Chart of the Day - Wednesday, January 18th, 2023
January 18, 2023
Today’s Chart of the Day was shared by Nick Reece (@nicholastreece). The S&P 500 fell back below its 200-day moving average today, after being rejected at its downtrend line yet again. This infamous trendline has been tested several times in the past year, only to be rejected each time. The more times a trendline is touched, the more valid it becomes. In other words, each touch raises the significance of a potential breakout. Nick points out that price is currently at a crossroads, pinched between a declining 200-day moving average and a rising 50-day moving average. Buyers and sellers have battled their way to an important inflection point, so watch for a decisive resolution higher or lower in the near term.