Chart of the Day - Tuesday, May 31, 2023
Friendly reminder:
We're breaking out on the monthly chart. pic.twitter.com/n2eqbfBXrY
— Jake Wujastyk (@Jake__Wujastyk) May 31, 2023
Today’s Chart of the Day was shared by Jake Wujastyk (@Jake_Wujastk). May is in the books! The S&P 500 inched higher by just +0.25% this month, but that was enough to mark a new 14-month high. Jake reminds us that the S&P 500 is continuing to breakout of a one-year base on the monthly chart. It broke out to 12-month highs last month for the time in a year, which has historically been followed by above average returns. Also, the MACD (lower panel) is curling higher and setting the stage for a bullish crossover in the coming months. Day-to-day price action can be disorienting. When you zoom out, the breakout remains fully in-tact and perhaps in its early stages.