Chart of the Day - Thursday, August 27th, 2020

Today’s Chart of the Day was shared on Twitter by Linda Raschke (@LindaRaschke). It’s a weekly bar chart of the Dow Jones Industrial Average over the past year. Papa Dow led the rest of the major indices today, with help from the Financial sector waking up from a long nap. On the other hand, the Tech-heavy Nasdaq took the day off after what has been a relentless rally. Linda points out that the Dow is now attempting to fill the massive gap that was formed when price opened significantly lower on February 24th. The S&P 500 successfully filled its February gap a few weeks ago, before moving on to record highs. If Papa Dow can fill this gap, there will be very little overhead supply to prevent it from joining the other indices at all-time highs. Until then, this area remains a key test for the Dow, so mind the gap!