The First Move, 31st January 2023

🖼 Daily Technical Picture 📈

➤ After Friday's weak close, prices acted even weaker by a sharp fall on Monday. Well...not really a sharp fall...more of a standard-sized fall given the jump in volatility post 2021. In any case, the Bears have made the first move in this important week of economic announcements. What response will the Bulls have on interest rate decision day Tuesday?

➤ Remember, I would consider the Bear market over with a monthly close above 411.73 on the SPY monthly chart. Will it be achieved on the final day of January?

➤ The VIX has moved higher off the lows. It's not very convincing at the moment. Another heavy down day will change that narrative completely.

➤ I have entered a small LONG position given the technical set-up.

➤ Conclusion: Back in the action.