Chart of the Day - Friday, August 5th, 2022

Today’s Chart of the Day was shared by Jonathan Krinsky (@jkrinskypga). It's a chart of the S&P 500 since the end of December. The level in red, around 4231, represents the 50% retracement of this year's decline. Jonathan points out that a potential break above the 50% retracement could signal the start of a new bull market. He notes, "Since 1950 there has never been a bear market rally that exceeded the 50% retracement and then gone on to make new cycle lows. Therefore if the SPX were to exceed 4231, we would have to assume that June was the low for this cycle."