Chart of the Day – Monday, August 12, 2024

$SPX Nearly back to the scene of the crime. pic.twitter.com/ipN4dqJ5ke

— Frank Cappelleri (@FrankCappelleri) August 12, 2024

Today’s Chart of the Day was shared by Frank Cappelleri (@FrankCappelleri).

• The S&P 500 was completely unchanged today as buyers and sellers wait to digest the feast of economic data due out this week.

• $SPX broke the neckline of a two-month Head & Shoulders pattern, around 5,400, on Friday, Aug. 2nd, before gapping lower by -3% the following Monday. This bearish pattern has already met its downside objective using a measured move price target.

• After a sharp bounce, Frank points out that $SPX has returned to the scene of the crime (5,400). Reclaiming this former support level is the only item on the Bulls’ to-do list this week.

The Takeaway: After completing a Head & Shoulders Top last week, $SPX is retesting the neckline at 5,400. Reclaiming 5,400 would open the door to all-time highs. However, failing to reclaim it could lead to a retest of last week’s low. This will be a big test for the bulls.