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Major Market Swing Signal (End of Day) Friday 1-20-23

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The percentage of Stocks in a Bullish Upswing for all Categories are


23% of the Dow Jones is on an Upswing


28% of the S&P 100 is on an Upswing


42% of the Nasdaq 100 is on an Upswing


34% of all Three Indexes Top Holdings is on an Upswing


The Major Indexes had a strong up Day Friday. The S&P 500 was up (1.89%), The Nasdaq was up 2.66% and the Dow Jones was up 1.00%. The Volume was also very high but that was because of the Options Expiration (Triple Witching Day). We will get a better view of the volume picture next week


The Chart Structure for the major Indexes is still having a battle with Key Overhead Resistance


It's still the same All Three of the Major Indexes testing resistance at the long-term downward trending trendlines on the Weekly Charts. These trend lines have been in place for the whole year of 2022.


Each time the Indexes tried to break above the trendline it has gotten rejected. The indexes got rejected at this long-term downward trending trendline THREE times in 2022.


The market is now testing the trendline again for the 4th time. The question is will it find resistance again and get rejected or will it finally break through and close above


A picture is worth a Thousand Words


In our opinion below are the MOST IMPORTANT CHARTS IN THE STOCK MARKET at this TIME


Below is a Daily Chart of the S&P 500 Index Notice the Pirce Action continues to find resistance at the Downward Trending Trendline it can't seem to break above it. Until the Price breaks above this level, I will be looking to go Short (bet against the market)



Below is a weekly Chart of the SPY (the ETF that tracks the S&P500). Notice that on the Longer-Term chart of the SPY that the Price Action continues to find resistance at the MULTIPLE Downward Trending Trendlines for the whole year of 2022. Price is testing these resistance levels once again. There is also an internal upward trending trendline that the price needs to break above. Price also needs to break the 404 horizontal Resistance Price Level



Below is a Daily Chart of the SPY (ETF that tracks the S&P500) with our Key Moving Averages. On this chart, we can clearly see that Price is once again testing the 200-Day MA. We want to see the Price break above the 200 Day MA and close above it. The Price action has not been able to close above the 200 Day for more than TWO Days and then it fails. We need to see the Price break above the 200-Day and find support at the 200-Day MA or just keep blasting straight through it.


It's really not that hard. It comes down to PATIENCE. Until the price breaks above those Downward Trending Trendlines and the 200-Day MA as shown in the charts above, It is a huge chance that Price will reverse and break below the 21-Day and 50-Day MA. At that time we will be looking to go Short (bet against the market)


Economic Reports


Monday, Jan. 23, 2023,

Nothing Important


Tuesday, Jan. 24, 20223,


@ 9:45 am Manufacturing PMI (Jan)


@ 9:45 am S&P Global Composite PMI (Jan)


@ 9:45 am Services PMI (Jan)


Microsoft Earnings Due After the Close (This could be a market mover)


Wednesday, Jan. 25, 2023


@ 10:30 am Crude Oil Inventories


Tesla Earnings Due After the Close (This could be a market mover)



Thursday, Jan 26, 2023


@ 8:30 am Core Durable Goods Orders (MoM) (Dec)


@ 8:30 am GDP (QoQ) (Q4)


@ 8:30 am GDP Price Index (QoQ) (Q4)


@ 8:30 am Continuing Jobless Claims (This could be a market mover)


@ 8:30 am Initial Jobless Claims (This could be a market mover)

@ 8:30 am Jobless Claims 4-Week Avg (This could be a market mover)


@ 8:30 am PCE Prices (Q4)


@ 10:00 am New Home Sales (MoM) (Dec)


@ 10:00 am New Home Sales (Dec)


Friday, Jan 27, 2023


@ 8:30 am Core PCE Price Index (MoM) (Dec) (This could be a market mover)


@ 8:30 am Core PCE Price Index (YoY) (Dec) (This could be a market mover)


@ 8:30 am PCE Price index (YoY) (Dec) (This could be a market mover)


@ 8:30 am PCE price index (MoM) (Dec) (This could be a market mover)


@ 8:30 am Personal Income (MoM) (Dec)


@ 8:30 am Personal Spending (MoM) (Dec) (This could be a market mover)


@ 10:00 am Michigan 5-Year Inflation Expectations (Jan)


@ 10:00 am Michigan Consumer Sentiment (Jan) (This could be a market mover)


@ 10:00 am Pending Home Sales (MoM) (Dec) (This could be a market mover)


@ 3:30 pm CFTC Nasdaq 100 speculative net positions (This could be a market mover)


@ 3:30 pm CFTC S&P 500 speculative net positions (This could be a market mover)



The Bulls are fighting and the market is in a New Confirmed Uptrend, Market Breadth is Strong but it's starting to get near extremes (the market can top out at these levels), Volume is coming into the market slowly.


We are in earnings season so we must be careful


Thank You

Rod

BTA

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