# Will This Trigger a Market Bounce?

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Hey, Ross here:

After a punishing pullback that’s about to enter its third month, the S&P 500 is now back where it was in early June.

But yesterday’s price action could herald a market bounce – the Chart of the Day explains why.

**Chart of the Day**

![](https://lh6.googleusercontent.com/1kWpZv0Le47e05GfrtO9j6QtOfyhnKQ4cRVpIdfO4iMuCtYO7YgYWOA1QASLXy3fHJJefafkSUHe6yvEh-JCnwcOQBdypYR5KhCcpFribDUNb3-fCX3IXVJgaTPAxsDxA5J25gBqiqVLleJnTMY3X5s)

This is a chart of the S&P 500. Two things to notice here.

The first is the candle formed by yesterday’s price action. It’s called a hammer candlestick, because the candlestick body is short _(i.e. looking like a hammer head)_ while it has a long lower shadow _(i.e. the hammer handle)_.

Hammer candlesticks happen after a downtrend and are considered signals for a reversal pattern.

And as you can see, yesterday’s hammer candlestick also formed at a long-term trendline which connects the March 2023 lows AND the October 2022 lows.

The next move to watch for is whether the S&P 500 will be able to maintain this trendline or not.

If it does, that’s a good sign. If it breaks to the lower side, however, there could be more pain ahead.

**Insight of the Day**

**The best opportunities will happen right at the beginning of a market reversal**.

Yes, it’s always smart to let the price action confirm the trend before making a move.

But the most lucrative opportunities always happen at the beginning of a new trend.

So if the market is about to reverse, inaction is costly.

That’s why I’m going LIVE tomorrow at 12 p.m. Eastern to show you my #1 strategy for taking advantage of any potential reversal.

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And I’ll explain everything tomorrow.

Embrace the surge,

![](https://stocksurgedaily.com/wp-content/uploads/2023/05/image.png)

Ross Givens  
Editor, **_Stock Surge Daily_**