Chart of the Day - Friday, May 13th, 2022

Today’s Chart of the Day was shared by Brian Shannon (@alphatrends). It's a daily candlestick chart of the S&P 500 ETF ($SPY) since the beginning of the pandemic. Brian points out that $SPY rebounded right at the Volume Weighted Average Price (VWAP) from Covid lows. This is essentially the average price ($384) that buyers and sellers have transacted at since the last bear market ended. Other indices, like the Nasdaq and the Russell 2000, remain below their respective VWAPs from the Covid lows. So, the coast isn't exactly clear, but this is a much-needed victory for the bulls. If $SPY eventually breaks this VWAP it would be a major red flag.