Chart of the Day - Monday, September 18, 2023

Today’s Chart of the Day was shared by Frank Cappelleri (@FrankCappelleri). Bulls and bears have been playing a game of chicken for nearly two months, with neither side in control. Volatility has seemingly vanished, and it's been rare to see daily swings in the S&P 500 exceed +/-1%. Despite the calm tone, pressure is building for a meaningful resolution or trend in either direction. The S&P 500 continues to coil into a triangle pattern, or pennant as it's also called. We're getting closer to a decision point as we approach the apex. Frank points out that all that's missing is a catalyst or headline to spark the powder keg. These narrowing patterns typically resolve in the direction of the underlying trend, but, we're entering what has historically been the worst two weeks of the year for the S&P 500.