Chart of the Day - Thursday, August 31, 2023

Today’s Chart of the Day was shared by Frank Cappelleri (@FrankCappelleri). August is in the books! The S&P 500 snapped a five-month winning streak, falling -1.77%. On a brighter note, it closed +4% off the month’s lows. Frank points out that price action in 2023 continues to be the polar opposite of 2022. One of the key differences has been that breakouts and retests have been successful. In a comment to The Chart Report, Frank explained: “What was once resistance acted as major support this past month.” August 2022 began with a nasty failed breakout, and the index closed at the month’s lows, down -4.24%. On the other hand, this August started with a mild dip that got bought. While price behavior continues to improve, Bulls will face even stronger seasonal headwinds next month, as September has historically been the worst month for the S&P 500.