Trendline Upside Break Out – 01/25/23.

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.    

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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