So far, even I’m amazed at how well my market prediction of the past three months has played out.

I’ve been showing you this chart of the S&P 500 throughout that time. I’ve been noting the wide gap in the index’s February prices.

(Click here to view larger image)

And what have I been saying? “Gaps are made to be filled.”

Price gaps are like magnets — they tend to draw stocks up or down.

And in this case, the S&P 500 has been following my script almost word for word.

I expect that we will see this gap filled in coming weeks. The stock market tends to rise into major holidays. Given the way the S&P 500 is behaving right now, I expect to see the index float higher — and possibly fill the gap in the lead up to the July 4 holiday, or coming out of the holiday.

But it’s what happens after that concerns me.

A “filled gap,” at the prior highs of an index or stock chart, can signal an imminent “breakout” — with a stock or index moving sharply higher. Or it can indicate that a reversal is in the cards.

The psychology behind it is that investors become feverishly bullish. It makes sense. We have a stock market that moved higher for three months straight.

Presuming the S&P 500 fills the gap, it looks and feels unstoppable.

It’s at that point that the trap is laid.

That’s what’s in the cards for us as the summer drags out. I don’t think the market will fall sharply. It will continue to appear just strong enough to keep the vast majority of investors in the game, and hopeful for even “higher highs” in the fall.

So, that’s why I am telling you to stay alert. Don’t allow yourself to become complacent about the stocks you own.

I’m continuing to keep a sharp eye on our portfolio, which is why we nabbed gains in Verizon (NYSE: VZ) and preserved capital in SmileDirectClub (Nasdaq: SDC) on Friday. As we continue to navigate this COVID-19 environment, it’s crucial to stay nimble with our investments.

As for the webinar, I discuss:

• An update on our newest position. We’re up 5% in just a couple of weeks!
• Why I expect National Vision Holdings (Nasdaq: EYE) to hit new highs by the end of the year.
• How we’re hedging against the fall of the dollar with one of our special report stocks.

To watch this week’s 12-minute webinar, click on the image below.

(Click here to watch the webinar.)

Click here to read a transcript.

I’ll be back with you next week! In the meantime, check out our resources if you haven’t already. We have a wealth of great information online, including our trading manual, special reports, FAQ and more!

Best of Good Buys,

Jeff Yastine
Editor, Total Wealth Insider
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totalwealthinsider@banyanhill.com