Chart of the Day - Monday, December 6th, 2021

Today’s Chart of the Day was shared by Adam Koos (@AdamKoos). It's a 60-min candlestick chart of the S&P 500 over the past three months. The S&P 500 is attempting to carve out a short-term bottom. It has managed to find some support over the past few session at a confluence of support from the September highs and the 50-day moving average. Adam points out that RSI (lower panel) is beginning to diverge positively from price, which is a sign that a short-term trend reversal is brewing. To be fair, RSI can diverge from price for a while before materializing into anything meaningful, so it would be prudent to wait for the S&P to reclaim 4,600 to confirm this bullish momentum divergence.