Chart of the Day – Tuesday, April 23, 2024
Patrick Dunuwila
The Chart Report
6 months ago
1 MIN READ
And we are back through the 2/22 gap. Pretty solid short-term defensive save. Also, no OS reading yet on RSI – nice stand there, too. If we can now hold this area, chances increase that the drawdown is close to being over…$SPX $SPY $ES_F pic.twitter.com/OQTm4xuIjN
— Ian McMillan, CMT (@the_chart_life) April 23, 2024
Today’s Chart of the Day was shared by Ian McMillan (@the_chart_life).
- The S&P 500 ($SPX) has bounced +2% this week after falling for six consecutive days. The max drawdown throughout this pullback has been -5.5% (closing basis).
- $SPX reclaimed 5,000 today after filling a gap from Feb. 22nd last week. Ian points out that RSI avoided its first oversold reading since the October lows, suggesting momentum remains in a bullish range.
- At -5.5%, this could end up being a very vanilla pullback. Although, it certainly didn’t feel vanilla. The $VIX spiked over +50%, and breadth got washed out.
The takeaway: The S&P 500 is back above 5,000 after bouncing +2% from Friday’s low. Momentum remains strong, and the next bullish objective is all-time highs.
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