Chart of the Day - Monday, June 27th, 2022

Today’s Chart of the Day was shared in a note by John Roque of 22V Research (@daChartLife). The S&P 500 has rebounded about 6% over the past six trading days, however, John points out that this should be treated as a bear market rally until proven otherwise. The index is still in a confirmed downtrend, and overhead resistance is lurking around 4000 - 4200. This area acted as support in March, but it became resistance when it failed in early May. The tables below serve as a reminder that double-digit rallies are commonplace in bear markets. These bounces can be seductive, lasting for several weeks before eventually rolling over. At this point, the S&P 500 would have to gain about 23% to return to where it started the year at all-time highs. It's unlikely to make a stand like that without hitting its head on resistance first.