Chart of the Day – Wednesday, August 21, 2024

Ignoring August 8th’s inside bar, it’s been 12 days since $SPX had a lower high and lower low, most since April 2021: pic.twitter.com/VY1qpQP8rq

— Optuma (@Optuma) August 21, 2024

Today’s Chart of the Day was shared by @Optuma.

• The S&P 500 rose +0.42% today after breaking an eight-day winning streak yesterday. While the index closed lower by -0.20% yesterday, it still made a higher high and a higher low intraday.

• Optuma points out that $SPX has made a higher high and a higher low for 12 consecutive days (excluding the inside bar from Aug. 8th). This speaks to how aggressive buyers have been throughout the rebound. It also looks like the footprints of institutional buying.

• $SPX is less than 1% off its all-time highs with two trading days remaining in the week and a Fed speech on Friday.

Takeaway: The S&P 500 has made a higher high and higher low for 12 consecutive days (intraday). This speaks to the strength in the underlying trend and aggressive buying.