Chart of the Day - Friday, February 2, 2024

🏆 Today’s Chart of the Day was shared by Steve Deppe (@SJD10304).

• The S&P 500 ($SPX) closed at an all-time high for the third consecutive week, less than 1% from crossing 5,000 for the first time.

• Since the October low, $SPX has closed higher in 13 of the past 14 weeks, gaining +20.4%.

• There have only been seven other instances where $SPX surged +20% over 14 weeks and closed at a record high. $SPX has always been lower one month later by an average of -2.18%. However, those were buyable dips 85% of the time, considering $SPX was almost always higher three months later (6 out of 7).

The takeaway: History tells us to anticipate a pullback in the next month. However, the trend is unequivocally higher, and $SPX can afford to zag after zigging +20% in just 14 weeks.