Chart of the Day - Friday, March 15, 2024

🏆 Today’s Chart of the Day was shared by Mike Zaccardi (@MikeZaccardi).

• The S&P 500 logged its first back-to-back weekly loss since October, but both weeks have been virtually flat (-0.26% and -0.13%), leaving the index just -0.39% below record highs.

• Mike points out that the index printed a Doji candle for the second week. Doji candles feature an open and close that are essentially the same. They represent a brief moment of equilibrium between buyers and sellers, signifying a state of indecision.

• Doji candles are often found at inflection points where the trend pauses before continuing higher or reversing lower.

The takeaway: Buyers and sellers have reached a stalemate over the past two weeks after one of the strongest rallies in recent history. Neither side has been able to take control of the near-term trend, but this pause is setting the stage for a meaningful inflection, higher or lower.