Chart of the Day - Wednesday, July 19, 2023

Today’s Chart of the Day was shared by Joe Fahmy (@jfahmy). Joe points out that the current rally in the Nasdaq Composite (right) resembles the rally in 2003 when the index was recovering from the dot-com bubble. Both 2003 and 2023 were preceded by bear markets that bottomed in October. As we know, October has a reputation for being a bear market killer, especially in mid-term election years like 2002 and 2022. After bottoming in October, both periods rallied into the New Year before pausing for a few months. Both eventually resolved higher around Springtime as price began to ride the 21-day EMA. By late-Summer 2003, pullbacks began to deepen to the 50-day moving average, but the uptrend remained intact, and momentum picked up again at the end of the year. For more on this, read the full blog post here.