Chart of the Day - Tuesday, May 23, 2023

Today's Chart of the Day was shared by Arun Chopra (@FusionptCapital). It's a 15-min candlestick chart of S&P 500 futures over the past two weeks. The S&P 500 has been rejected at 4200 (white line) so many times over the past year that it's almost comical. It looked like it was finally ready to crack last week as price poked its head above it. However, it's been unable to sustain a meaningful breakout above it. S&P 500 futures managed to close slightly above it on Thursday, but the index ($SPX) and the ETF ($SPY) never officially closed above their respective 4200 levels. Arun points out that we're back below it after today's decline, which puts the S&P 500 at risk of a failed breakout. It hasn't been confirmed just yet, but downside follow through in the remainder of the week would do the trick. The S&P 500 will continue to be rangebound until this level is reclaimed.