Chart of the Day - Monday, July 25th, 2022

Today’s Chart of the Day was shared by Yuriy Matso (@yuriymatso). It's a 4-hour candlestick chart of S&P 500 futures over the past three months. The yellow line represents the June 10th highs around 3950. Yuriy points out that if the S&P 500 breaks this level, it will constitute a failed breakout. As we know, failed breakouts are often followed by sharp moves in the opposite direction, which in this case is lower. Between earnings and the Fed, everyone is expecting a big week ahead. The bulls will be trapped if the S&P 500 fails to hold 3950 in the coming days.