The 400, 30 Mar 2023

٢٩ مارس ٢٠٢٣🖼 Daily Technical Picture 📈

➤ Equities shot up higher with you guessed it...Nasdaq leading the way. If investors did not have a large tech allocation, they have been left way way behind at least so far this year.

➤ S&P500 is up 5% YTD but is now back trafficking at the 400 level. This has been the recent "zero" line from where prices oscillate up and down 5% on either side. With VIX now collapsing to low levels, the up move since the 14th March low may be limited. This is especially true as we are in a range-bound market regime.

➤ Given the above, I took off half of my long position leaving a moderate sized exposure. In this environment, whenever price hits resistance or support, there is a chance the price can reverse rather aggressively.

➤ Note the sizable price gap due to today's jump at the open in the SPY. In recent times, all these gaps have been filled either immediately or shortly in the future. I don't see this gap being any different.

➤ Conclusion: A decent profit so far making up for lost time due to the sporadic trading action this month.

EQUITY TREND:

⦿ Short-term (weeks) - DOWN
⦿ Medium-term (< 6 months) - UP
⦿ Long-term (>6 months) - DOWN