200-day moving average

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 200-day moving average

If support hold we could be up an easy 10%

Since the beginning of 2022 this market has been steered lower by the widely followed 200-day moving average.

When I tell you the 200-day moving average is important, that’s an understatement.

I’ve been doing this long enough to know that even the most fundamental money managers on the street pay attention to this line and base a lot of their long-term asset allocation decisions on how the market is positioned relative to this line.

I think for 2023’s developing rally to gain some escape velocity, the 200-day moving average has to become support.

Such polarity (when resistance becomes support and support becomes resistance), should it occur, will cause the stocks I am eyeing very closely this week to respond very well to this earnings season.

I mean, just look at the popular stocks that are on deck this week alone:

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