Chart of the Day - Monday, October 16, 2023

Today's Chart of the Day was shared by Michael Nauss (@MichaelNaussCMT). The S&P 500 ($SPY) kicked off the week on a positive note, rising +1.05% on Monday. Despite the upbeat start, $SPY is essentially unchanged since Wednesday. Michael points out that it's stalling as it attempts to fill the gap created on September 21st. The reversal ran out of steam last Tuesday when $SPY initially drilled into this gap. A close above $439 would do the trick and open the door for a test of the July highs, around $459. It would also invalidate the bearish Head & Shoulders pattern formed over the Summer. This continues to be the next item on the bull's to-do list. Mind the gap this week!