Chart of the Day - Tuesday, April 14th, 2020

Today's Chart of the Day was shared on Twitter by Adam Koos (@AdamKoos). It's a daily candlestick chart of the S&P 500 with a 50-day moving average in blue, and a breadth indicator in the bottom pane. In just 15 trading days, the S&P 500 has rebounded over 27%, marking one of the sharpest rallies that the index has seen in decades. Breadth has surged as well, with the percentage of stocks in the S&P 500 above their 20-day moving average spiking from 10% to 87%. While this seems like bullish price action, Adam points out that price is now approaching a declining 50-day moving average from below, which he says could act as a level of overhead resistance. The last time the index tested a declining 50-day moving average from below, price rolled over and fell precipitously. Will this time be different? Only time will tell. However, if you're someone who has been uncomfortably long and concerned about the market, this would be a logical level to raise some cash.