Chart of the Day - Thursday, January 4, 2024

Today's Chart of the Day was shared by Mike Zaccardi (@MikeZaccardi). The S&P 500 ($SPY) has fallen four consecutive days after rising for nine consecutive weeks. $SPY fumbled its initial attempt at all-time highs this week, but Mike points out it's approaching potential support at $460. $SPY was rejected at this level in March '22 and July '23 but finally broke out last month. The outcome of this test will reveal whether this is a healthy pullback or the start of a deeper corrective phase. A breakdown would open the door to further downside, while a bounce would give the index a second shot at all-time highs.