Chart of the Day - Friday, January 19, 2024

🏆 Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts).

• It’s official!… The S&P 500 printed its first all-time high in two years today.

• Why do we care about all-time highs? Once price enters uncharted territory, there’s virtually no price memory or overhead supply to prevent it from trending higher.

• The drawdown lasted 511 trading days,  falling as much as -25%. This was the longest drawdown since the Great Financial Crisis, and the 6th longest since 1950. It’s often said that trends correct through either time or price, but this was a healthy dose of both.

The takeaway: The S&P 500 broke out to record highs for the first time in two years today. The long-term uptrend is ready to resume after a correcting through both time (511 days), and price (-25%). It’s emerging from a two-year base, but bulls must defend the prior highs at 4,800 to avoid a failed breakout.