Chart of the Day - Tuesday, August 29, 2023

Today's Chart of the Day was shared by (@Dash_charts). The Bulls had one of their best days of the Summer today. The S&P 500 rose +1.45%, marking its strongest day since June 2nd. Even Bitcoin caught a big bid! Meanwhile, the US 10-year Treasury yield fell hard and closed below its breakout level (4.25%). This begs the question: What if the breakout in the 10-year yield fails? @Dash_charts points out that RSI has formed a bearish momentum divergence by making lower highs while price made higher highs. It would also make sense to see this breakout fail from a sentiment perspective, given how well-broadcast it's been. As we know, failed breakouts often lead to sharp moves lower. Stocks would likely benefit if yields drop.