Chart of the Day - Friday, December 6th, 2019

Today’s Chart of the Day was shared on Twitter by Michael Santoli (@michaelsantoli). It's an intraday chart of the S&P 500 index over the past four weeks. This past week was certainly an interesting one. The S&P 500 fell 0.86% on Monday, gapped lower on Tuesday, but then gapped back above Tuesday's range on Wednesday. The index continued higher on Thursday, and today, we closed the week even higher than where we began on Monday. Market participants hadn't seen volatility like this in weeks. Michael highlights the bullish island reversal that was formed by Tuesday's price action. Traders who sold or got aggressively short on Tuesday's gap lower were trapped by the subsequent gap higher on Wednesday, providing dry powder for the market to move higher. For more on this week's pullback, check out our recent report.