Chart of the Day - Wednesday, September 27, 2023

Hammer time$SPX pic.twitter.com/MkMfL1pb3V

— David Rath, CMT, CFA (@DJwrath) September 27, 2023

Today’s Chart of the Day was shared by David Rath (@DJwrath). The S&P 500 was unchanged today (+0.02%) but closed +0.85% off the lows. David points out that today's intraday rally formed a hammer candle, at a key trendline. This rising trendline has been in place for nearly a year as it connects the October/March intraday lows. Hammer candles often indicate a bullish reversal, but price will need to follow through higher tomorrow for confirmation. RSI (lower pane) closed at 30.50 today, avoiding what would've been its first oversold reading (below 30) since last September. The next task for the bulls is reclaiming the August 2022 highs, around 4,300.