Chart of the Day - Friday, July 9th, 2021

Today’s Chart of the Day was shared by Ian McMillan (@the_chart_life). Over the past three sessions, the S&P 500 has formed a bullish candlestick pattern known as the "Abandoned Baby" pattern. As silly as it sounds, there is actually a lot of market psychology behind it. This is a three candlestick pattern in which the second candle gaps down and forms a Doji, followed by a gap higher and a strong green candle. The pattern signals that buyers have regained control after a moment of indecision (yesterday). It's important to note that this is more of a short-term signal, and it doesn't tell us where prices are headed over the long-run. But, it certainly bodes well for next week! As Ian points out, someone should probably call Child Protective Services, because it looks like someone abandoned their baby yesterday on the daily chart of the S&P 500.