Chart of the Day - Monday, January 9th, 2023

Today’s Chart of the Day was shared by Doug Busch (@chartsmarter). The Tech-heavy Nasdaq has underperformed the S&P 500 for more than a year now (lower panel). However, Doug points out that it looks primed for some mean reversion. We've had Doji candles for two consecutive weeks now. Both closed near the highs of their weekly ranges, and above crucial support. Doug adds that momentum has been diverging positively for more than 7-months now, with RSI making a series of higher lows since June (upper panel). The index gapped higher this morning, but was  quickly rejected near its 50-day moving average, so that continues to be an important hurdle for the bulls to clear in the very near term.