Chart of the Day – Thursday, May 30, 2024

The week isn’t over, but bulls don’t want to see us finish tomorrow below April’s closing high along with a bearish momentum divergence. $SPX pic.twitter.com/88b1RwfbBa

— Andrew Thrasher, CMT (@AndrewThrasher) May 30, 2024

Today’s Chart of the Day was shared by Andrew Thrasher (@AndrewThrasher).

• The S&P 500 is currently down -2.28% this week, putting it on track for its worst week since March and its third-worst week of 2024.

• The index closed slightly below its former highs today, which are around 4,250. A weekly close below this critical level would confirm a failed breakout. As we know, failed breakouts can get ugly fast.

• Andrew also points out that 14-week RSI has formed a bearish momentum divergence. Price made all-time highs last week, while RSI couldn’t even reach overbought territory (above 70).

The takeaway: The S&P 500 is in a precarious spot. The bulls must reclaim 4,250 tomorrow to avoid a failed breakout while breadth and momentum are diverging.