Chart of the Day - Friday, May 5, 2023

Today’s Chart of the Day was shared by Walter Deemer (@WalterDeemer). The S&P 500 fell -0.80% this week, but it ended on a strong note gaining +1.85% on Friday.  Walter points out that the S&P 500 ETF, $SPY, has formed a bullish island reversal. This pattern was formed by Thursday's gap lower and Friday's gap higher, which left Thursday's bar isolated below the rest of the week's price action. Interestingly, this reversal occurred right at the VWAP anchored to the all-time high. Despite this bullish reversal, the S&P 500 is still below 4200, which has been resistance for months now. That key level remains the next major upside objective for the bulls to achieve.