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Chart of the Day - Friday, February 25th, 2022

February 25, 2022

Today’s Chart of the Day was shared by Yuriy Matso (@yuriymatso). it's a daily candlestick chart of S&P 500 futures over the past eights months. Yuriy points out that the S&P 500 has formed a bear trap over the past three days. A bear trap, (or failed breakdown as it's also called) is when price breaks a major support level, only to quickly reclaim it. Bear traps often lead to sharp moves higher, so this is a pretty bullish setup for next week. As long as the S&P 500 is back above ~4260, the bears are trapped, and the bulls are back in control.