$SPX – Does 3930-3940 look like an important area?
Quite a lot going on there.
?The ATH downtrend line
?Oct '22 low trendline
?Oct '22 low AVWAP pic.twitter.com/BQBRvJcbN5
— Andrew Moss, CMT (@Andy__Moss) February 22, 2023
Today’s Chart of the Day was shared by Andy Moss (@Andy_Moss). The S&P 500 poked its head above 4000 intraday, but it couldn’t hold above it, closing at 3991. Andy points out that there’s a major level of interest about 1% below today’s close. Between 3930 and 3940 you have;
1.) The 200-Day Moving Average
2.) The Downtrend Line from the All-Time High
3.) The Uptrend Line from the October Low
4.) The VWAP Anchored to the October Low
All four of these are bunched together in a tight 10-point range (0.25%). The fact that multiple indicators and trendlines have converged at this level doesn’t necessarily increase the odds that it will act as support, but it does raise the implications of a break or bounce.