Chart of the Day - Tuesday, July 20th, 2021

Today’s Chart of the Day was shared by Mattew Fox (@topstockcharts). It's a daily candlestick chart of the S&P 500 ETF, $SPY, throughout 2021. The S&P 500 gapped lower to start the week yesterday, but buyers showed up to defend the 50-day moving average once again. Matthew points out that this is the seventh successful test of the 50-day moving average this year. Clearly, this is an important moving average to keep an eye on. Eventually, it will fail. But, it doesn't make much sense to fight the trend as long as the S&P 500 is above an upward sloping 50-day moving average. The bears had their chance to take us lower, but the bulls stepped in exactly where they needed to today. Heck, we even reclaimed the 5-day moving average in today's session. After a quick trip to the 50-day moving average for the seventh time this year, all-time highs are now the next objective.