Chart of the Day – Friday, June 21, 2024

As long $SPX holds the gap at 5400, it’s hard to label this market as anything other than “still incredibly strong”. $SPX < 5200 and it's a whole different thing. Held a webcast earlier this week and 60% of attendees expecting a major market top in June-July-Aug. Would you agree? pic.twitter.com/OzcA8coX48

— David Keller, CMT (@DKellerCMT) June 21, 2024

Today’s Chart of the Day was shared by David Keller (@DKellerCMT).

• The S&P 500 rose +0.61% this week, scoring an all-time high for the third week in a row. The index has closed higher in eight of the nine weeks since the April low, gaining +10% in that time.

• Mega-Cap leaders like $NVDA and $AAPL started to stumble this week. However, David points out that the S&P 500 remains incredibly strong if it’s above last week’s gap at 5,400.

• Momentum also remains strong. RSI reached a six-month high this week, confirming the trend rather than diverging. Falling below 5,400 would put the uptrend at risk, as it would open the door to the April low at 5,200.

The takeaway: The S&P 500 closed at record highs for the third week in a row. Breadth could be better, but the trend and momentum remain strong. Keep an eye on 5,400 for potential support next week.