Chart of the Day - Thursday, August 4, 2023

Today's Chart of the Day was shared by Gina Martin Adams (@GinaMartinAdams). The S&P 500 ended at the lows of the week after selling off into the close on Friday. It fell -2.28% overall, marking the worst week in nearly five months. While many blame this week's decline on the US debt downgrade, Gina points out that momentum indicators had been hinting at a potential pullback for several weeks. RSI (middle pane) formed a bearish divergence, as it made lower highs in July while price made higher highs. Gina adds that the MACD indicator (lower pane) also began stalling last month. Keep an eye on the August 2022 highs (around 4,300) for potential support in the coming weeks.