Hi Shoppers,

Nice selloff yesterday

Traders had a split-second at the opening to the bell to move on their longs or to get short.

That was it.

In fact, you had to sell the opening print to get the high of the day.

Here is the S&P 500 (Ticker: SPX) five-minute chart for Tuesday:

And, yes, we are trading well below that all-purpose support level at $4,080.

But … we closed at an interesting level.

Where Do We Go From here?

The S&P500 (Ticker: SPX) closed at a very interesting level yesterday.

Yes, I know, we are well below that “line in the sand” support level of $4,080 I have been talking about for so long.

Just below the closing price I am finding a convergence of three support lines right at $3,980:

The first is the downward trend line that goes back to the very beginning of January 2022.

The second line is a shorter uptrend line that begins on October 14, 2022.

The third is the 50-day moving average (yellow line).

We also have the golden cross occurring on Feb. 2, 2023.

The golden cross occurs when the 50 day moving average crosses over, to the upside, of the 200-day moving average.

This is considered a bullish signal.

Is the cup-and-handle formation negated?

Not necessarily.

According to the rules, the consolidation period can be within the top two thirds of the cup.

We do have some Fed speak today and several earnings reports left.

Let’s stay on this …

And be sure you join Griff tomorrow night to capitalize on others’ mistakes and grab your free watchlist.

Thanks for Reading … See You Next Tuesday,

Licia Leslie