Chart of the Day - Friday, January 20th, 2023

Today’s Chart of the Day was shared by Yuriy Matso (@yuriymatso). The S&P 500 fell -0.66% this week, marking its first down week of the new year. It spent the majority of the week chopping between its rising 50-day moving average, and its falling 200-day moving average. Yuriy points out that the index has coiled into a tight triangle pattern, with rising support and falling resistance. This consolidation pattern suggests the S&P 500 is gearing up for a strong move in either direction. As we approach the apex of this triangle, the potential is building for a strong resolution out of this pattern. A close above 4100 would confirm a breakout to the upside, while a close below 3800 would confirm a breakout to the downside. Keep an eye on how this pattern resolves in the coming days/weeks.