Back to Normal, 20th January 2023
🖼 Daily Technical Picture 📈
➤ Equities prices continued to fall. Two price gaps were closed. A lower gap that formed on the 10th Jan and the opening gap from Thursday trade. S&P500 has fallen below the support level at 390.
➤ I think it is clear that price has just formed a lower high. I could argue the short-term downtrend from the Dec 2022 high has been established. This counters the uptrend from the Oct 2022 low but re-aligns with the long-term downtrend since Jan 2022. Did you get that?
➤ Another thing that has re-aligned is that the Tech/Growth/Small cap stocks finally underperformed the DJIA and broader S&P500. This is "normal" behaviour under a risk-off period. Does that mean we are back to 2022 mode?
➤ I closed my long position with a loss as price didn't respond like I wanted. What I want and what the market gives are two separate things. Price may still bounce but I'm not going to risk it at this stage.
➤ Conclusion: Next trade is most likely an opportunity to go short. Standing by.
➤ Equities prices continued to fall. Two price gaps were closed. A lower gap that formed on the 10th Jan and the opening gap from Thursday trade. S&P500 has fallen below the support level at 390.
➤ I think it is clear that price has just formed a lower high. I could argue the short-term downtrend from the Dec 2022 high has been established. This counters the uptrend from the Oct 2022 low but re-aligns with the long-term downtrend since Jan 2022. Did you get that?
➤ Another thing that has re-aligned is that the Tech/Growth/Small cap stocks finally underperformed the DJIA and broader S&P500. This is "normal" behaviour under a risk-off period. Does that mean we are back to 2022 mode?
➤ I closed my long position with a loss as price didn't respond like I wanted. What I want and what the market gives are two separate things. Price may still bounce but I'm not going to risk it at this stage.
➤ Conclusion: Next trade is most likely an opportunity to go short. Standing by.
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✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
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