Chart of the Day - Wednesday, January 24, 2024

🏆 Today’s Chart of the Day was shared by Ian McMillan (@the_chart_life).

• The S&P 500 closed at record highs for the 4th consecutive day, marking the longest streak of record highs since November 2021.

• When price is in uncharted territory like this, technicians turn to Fibonacci extensions to establish potential resistance levels or targets. For whatever reason, Fibonacci levels often coincide with significant turning points.

• Ian points out that the 161.8% Fibonacci extension of the 2022 decline is between 5,400 and 5,600, which is more than +10% higher. In another comment, Ian explained, “Now, will it move in a straight line? I highly doubt it. But it is a target nonetheless.”

The takeaway: If the current breakout holds, the S&P 500 could rally double digits before encountering Fibonacci resistance.