A Pause, 25th January 2023

24 ม.ค. 2023🖼 Daily Technical Picture 📈

➤ Equities ended slightly weaker and traded in a narrow range (for once). There are a lot of games being played at the widely watched 200-day moving average that the S&P500 now sits.

➤ There's an overall contraction in the price swings in recent months due to the sideways moving market (since at least November 2022, stretching to May 2022). This flat-lining of movement is a process of building up energy for the next large directional move whatever that may be.

➤ Many people have observed the formation of the inverse head & shoulders chart pattern (a bullish formation). I'm not a big fan of these formations as they are unreliable but more so the construction of the current pattern looks "non-textbook" if I can put it politely.

➤ I currently hold no position.

➤ Conclusion: Pause in the action but not for long.

MrStocky
The Professional Loss Maker