S&P New Year's Decline

13 gen 2022

It’s the start of the year, and already, the markets are displaying a bit of
turbulence to shake off the dumb money investors.

This is merely a pullback for now, and there are clear signs to confirm this.

We can see that the S&P has been using the 20 and 50 simple moving averages
as support since the breakout in November 2021.

At times when price moved lower than the 50 simple moving average, it didn't
take too long before it resumed the bullish trend.

On January 4th 2022, price started to decline from a height of $4818 and pulled
back to the 50 simple moving average, and did move below this indicator but
didn’t close too far from it, forming a reversal candle.

This was our indication that a pullback was in play unless we continue to see
further weakness. So what we want to see now is a move towards the current
all-time high at $4818 and then a break and close above this level.

We continue to look for bullish stocks as the overall market still looks strong.

See below for more information on our trading techniques.

As always, keep it simple, keep it Sublime.