Market is Facing Resistance Again
Igor Manukhov - Nov 18, 2022
After another impressive rally in October, the market is facing some resistance. The key support level is 3900, key resistance level is 4075.
The market got excited about a lower than expected CPI print and rallied hard, but it appears that its now facing some resistance. Yet again, the market is having a hard time breaking above its 200 day moving average (blue line). Considering that we are in a historically strong season, I would give the market the benefit of doubt, but its starting to look like August, where the rally ultimately failed near its 200 day moving average.
We remain cautiously optimistic, having raised some cash as a precaution. The key support level is 3900 (red line), key resistance level remains just above 200 moving average (4075, purple line).