Chart of the Day - Monday, April 3rd, 2023

Today’s Chart of the Day was shared by Frank Cappelleri (@FrankCappelleri). It's a two-hour bar chart of the S&P 100 Mega Cap ETF ($OEF) over the past six months. $OEF cleared an important resistance level around $187 today, closing at a seven month high. Frank points out that RSI is reaching overbought (above 70) for the first time since February on the two-hour chart. The prior five overbought readings since October have led to pullbacks for $OEF. In recent weeks, the dramatic outperformance from Mega Cap stocks has masked some of the weakness beneath the surface of the major indices. It will be interesting to see if $OEF can sustain the recent breakout above $187. If the breakout fails, the major indices will need smaller cap stocks to step up to the plate in a big way.