Chart of the Day - Wednesday, August 2, 2023

Today’s Chart of the Day was shared by Shane Murphy (@murphycharts). Many are blaming the newfound weakness on the US Debt downgrade. However, this is happening at a very logical level of overhead supply. Shane points out that the S&P 500 is being rejected at resistance from the March 2022 high, around 4,600. The next major support level is the August high (around 4,300), which is about -4% lower from here. You can blame the US debt downgrade if you really need a reason to justify a slight pullback. However, this is a well-deserved breather for the S&P 500 after sprinting higher all Summer. As our friend Todd Sohn once said, "If you run a four-minute mile, you're gonna need a breather!"