Chart of the Day - Wednesday, January 26th, 2022

Today’s Chart of the Day was shared by Caleb Franzen (@CalebFranzen). It's a daily candlestick chart of the S&P 500 over the past two years. Do you know where the terms bull & bear markets come from? They refer to the way in which the two animals fight. Bulls fight with their horns plowing upwards, while bears fight with their claws slashing downwards. The media defines a bear market as a 20% decline, however, as technicians, we care more about the trend. Is it in an uptrend or a downtrend? An uptrend is defined as a series of higher highs & higher lows, while a downtrend is a series of lower highs & lower lows. We've been in a clear uptrend for nearly two years now making a series of higher highs and higher lows. However, Caleb points out that the uptrend is currently in jeopardy as we test the October lows around 4300. We haven't cracked that level just yet, but a close below there would confirm that we're no longer in an uptrend.