Chart of the Day - Monday, August 17th, 2020

Today’s Chart of the Day was shared on Twitter by Yuriy Matso (@yuriymatso). It's a 15-minute candlestick chart of S&P 500 futures. Price has been flirting with all-time highs over the past week but has been unable to seal the deal on a closing basis. As Yuriy points out, the 3,380 level has acted as a brick wall of resistance, halting each breakout attempt. Think about what happens when you take a sledgehammer to a wall. You may not breakthrough on the first few attempts, but each time you hit the wall, it gets weaker and weaker until you finally smash through. We like to think of these resistance levels in a similar way. Each time price touches that level, the level gets weaker and weaker. Will the sixth time be the charm? Stay tuned...