Today 01/25/23 the S&P 500 (SPX) had its third close above both the declining trendline from January 2022 and its 200 – day moving average (MA).
The daily SPX chart courtesy of Trading View updates the action.
From a time perspective three closes above the line and the moving average is bullish and implies the rally could continue for several weeks. From a price perspective the breakout is small and perhaps just one close below the line and MA could trigger a drop down to at least the low 3,800 area.
It appeared that a move over the SPX top at 4,015.39 could initiate a strong and steady rally into at least mid-February 2023. The small drop after the 01/23/23 trendline upside break out has reduced the chances of a strong steady rally. Its possible a choppy rally is developing.
Currently there are several Elliott wave alternate counts that could be under construction. Additional wave development is needed before making a forecast.
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