Chart of the Day - Monday, August 8th, 2022

Today’s Chart of the Day was shared by Andrew Adams (@DayTraderGator). The S&P 500 was up as much as 1% this morning, but it reversed lower and closed slightly negative. Andrew points out that today's reversal occurred right at the 30-week moving average. Stan Weinstein was famous for using the 30-week moving average in his strategy, Stage Analysis. You can read more about Stage Analysis here, but it essentially categorizes the market into four distinct phases. When the market is below a downward sloping 30-week moving average like this, it's considered to be in Stage 4, which is the most devastating of all four stages. As Andrew notes, caution is warranted as long as the S&P 500 is below the declining 30-week moving average.