Chart of the Day - Wednesday, January 4th, 2023

Today’s Chart of the Day was shared by Brian Shannon (@alphatrends). It's a six-hour candlestick chart of S&P 500 futures over the past six months. the S&P 500 has been stuck in a narrow range between 3800 & 3900 for more than two weeks now. Brian points out that there is a lot of price memory within this range, as several key AVWAPs have converged within it. Even the VWAP from the Covid low is within this tight range. When you have multiple VWAPs bunching together like this, it strengthens the implications of a potential breakout or breakdown. Given how long this range has persisted, we'll likely see a resolution higher or lower in the coming days. It would be very constructive to see a decisive break above 3900 in the near term, but that hasn't happened just yet.