Chart of the Day - Monday, January 24th, 2022

Today’s Chart of the Day was shared by Grayson Roze (@GraysonRoze). It's a daily candlestick chart of the S&P 500 over the past year. What a day! The S&P 500 was down nearly 4% at one point, briefly dipping into correction territory. However, buyers stepped in, and we actually managed to close positive by 0.28%. This was the largest intraday reversal that we've seen in nearly two years.  As you can see, today's price action formed a bullish hammer candle with a long lower wick. Hammer candles are often found at the end of a sharp decline, and typically mark some sort of short-term reversal. It's often said that hammer candles help to "nail in" a market bottom. Today's low around 4230 now offers a clear risk level to trade against. Watch for continued upside follow-through tomorrow to confirm today's bullish hammer candle.