Defended, 14 Mar 2023

١٣ مارس ٢٠٢٣🖼 Daily Technical Picture 📈

➤ Equities finished lower on Monday trade. If you had shut your eyes and ears over the weekend and arrived right now after market close, you’d think the market performance at the index level was just like any usual day in the past year. It was volatile, but it was certainly nothing extraordinary. In that respect, the regulatory authorities have done their job to “calm” markets. However, the movements in the regional banks and hyper volatility in Bonds tells us it was anything but ordinary.

➤ S&P500 price fell but was defended at the congestion zone that includes the level at which the year started. VIX hit 30 at my panic level and then receded. I expect things to settle down for a little while until market participants fully digest the ramifications of the policy changes and post mortem of the last 72hrs. There is however a slew of economic data this week starting with CPI Tuesday!

➤ I took off half of my short positions to lock-in profits given the above price action.

➤ In the short-term, prices are in a downtrend having established lower highs and lower lows. In the medium-term, the uptrend remains in tact although barely. A move below the 22nd Dec low would set a lower low and void the uptrend based on classical definition of an uptrend.

➤ Conclusion: Lots of volatility means lots of opportunity. Good luck All!

NOTES: BTC and crypto reacted very well in contrast. Small cap continues to underperform.