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Asset Watch
Tuesday, January 24, 2023
With the index sandwiched between weekly support and resistance, there isn’t much wiggle room in either direction. On the one hand, it closed above the 20-week moving average on Jan. 20, and the MA has largely marked support and resistance since May 2020 (outside of the bear market rally in August 2022).
On the other hand, the grey arrows show how overshoots of the 20-week MA have ended at the declining resistance line. And with the next milestone at roughly 11,800, the potential upside is limited.
As a result, with 20-week MA support near 11,400 and trendline resistance near 11,800, the Jan. 20 close of 11,619 signals that a breakout or breakdown could happen within days.
So, which is more likely?
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