Chart of the Day - Thursday, October 13th, 2022

Today’s Chart of the Day was shared by SentimenTrader (@sentimentrader). The S&P 500 posted one of its largest intraday reversals ever today. It was down as much as -2.39% this morning, but we gained more than +5% intraday, closing higher by +2.60%. More importantly, the S&P 500 reclaimed its June lows. Bears who shorted ahead of today's CPI print are trapped under those June lows for now. However, keep in mind that the four other larger reversals listed here all went on to retest those levels (1962, 1987, 2008, 2002). In other words, none of the other four larger reversals marked the exact low. Today's reversal was a much-needed reprieve for the bulls, but one day does not make a trend. Watch for upside follow-through in the coming days to confirm today's reversal.