Chart of the Day - Thursday, July 20, 2023

Today's Chart of the Day was shared by Matt Weller (@MWellerFX). Matt points out that today was the second worst day of the year for the Nasdaq, with the index dropping -2.28%. Mega Caps were down across the board today, but $TSLA contributed the most to the Nasdaq's decline, as the stock slid nearly -10% post-earnings. The Nasdaq certainly earned this breather after sprinting higher in recent weeks. It has plenty of room to pull back before violating the uptrend, but so far, it's holding above the 21-day and 50-day moving averages. Despite the Nasdaq's weakness today, the Dow continued higher for the ninth consecutive day. This is exactly what healthy rotation looks like, and it's necessary to sustain a bull market.