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Chart of the Day – Wednesday, May 29, 2024

🏆 Today’s Chart of the Day was shared by Jay Ligon (@TheeDisruptor).

  • The S&P 500 is only -1.0% off all-time highs, and yet it’s skating on thin ice as it tests the March highs. Closing below would qualify as a Failed Breakout.
  • The recent strength from $NVDA and other Mega-Cap stocks has masked some of the weakness beneath the surface of the S&P 500.
  • While the index reached all-time highs in May, fewer members were above their 200-day moving averages. The percentage of stocks above their 20-day and 50-day moving averages has also been diverging.

The takeaway: The S&P 500 is still +10% above its 200-day moving average, but the index is testing a critical level, while breadth has been deteriorating and diverging for several weeks.

The post Chart of the Day – Wednesday, May 29, 2024 appeared first on The Chart Report.

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