Chart of the Day - Friday, July 28, 2023

Today's Chart of the Day was shared by Brian G. (@alphacharts).  Stocks failed to follow through to the downside after yesterday's reversal. They ripped higher instead, with the S&P 500 and Nasdaq having their best day in July. To quote the legendary Walter Deemer, "When the market doesn’t do something it 'should' do, it usually means that the underlying trend is unusually powerful." It's easy to get chopped up in the day-to-day price action, but Brian reminds us to Zoom out and focus on the trend. Price is removed from the chart, or rather, smoothed by a 50-day average to emphasize the steady uptrend that has been in place in the Nasdaq 100 ($QQQ) this year. It really is this simple sometimes, although simple ≠ easy.