Chart of the Day - Thursday, September 10th, 2020

Today’s Chart of the Day was shared on Twitter by Gregory Krupinski (@G_krupins). It's a daily bar chart of the S&P 500 ETF, $SPY, over the past year. The S&P 500 is at a precarious spot heading into the end of the week. Greg points out that $SPY closed below the February highs today. Bulls will need price to reclaim those former highs soon, or else we could have a failed breakout on our hands. As we know, failed breakouts often lead to sharp moves lower. The index has already violated its uptrend line from June but is still trading above its 50-day moving average (not shown). Tomorrow's price action should give us some better clarity as to the direction of the intermediate trend. It will be a big victory for the bears if we close the week below the February highs. Stay tuned!