Chart of the Day - Thursday, December 7, 2023

Today’s Chart of the Day was shared by Matt Weller (@MWellerFX). The Dow is less than 2% from hitting record highs for the first time in nearly two years. It's been in a very narrow range all week after rising for five weeks straight. Matt points out that this price action resembles a bull flag. You can think of a bull flag as a minor correction through time, in which price digests its prior gains and builds energy for another advance. Matt also points out that RSI has been overbought all week, indicating momentum has remained strong during this four-day consolidation. The spring has been loaded, and it could pop any day now.