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Chart of the Day - Friday, July 10th, 2020

July 10, 2020

Today’s Chart of the Day was shared on Twitter by Michael Turvey of TD Ameritrade (@MikeTurvey_TDA). It's a weekly chart of the S&P 500 over the past year. The S&P 500 booked a decent gain of 1.75% this week, marking the second straight weekly gain. Michael points out that the MACD signal line is close to rising above 0, which would be yet another bullish confirmation signal. There are some notable risks brewing under the surface, including frothy sentiment and weakening breadth. Market internals are certainly worth paying attention to, but they come secondary to price, and for now, price is telling us that the trend remains higher. Keep it simple; the trend is your friend until the end when it bends.