Chart of the Day - Tuesday, April 23, 2024

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

• The S&P 500 ($SPX) has bounced +2% this week after falling for six consecutive days. The max drawdown throughout this pullback has been -5.5% (closing basis).

• $SPX reclaimed 5,000 today after filling a gap from Feb. 22nd last week. Ian points out that RSI avoided its first oversold reading since the October lows, suggesting momentum remains in a bullish range.

• At -5.5%, this could end up being a very vanilla pullback. Although, it certainly didn't feel vanilla. The $VIX spiked over +50%, and breadth got washed out.

The takeaway: The S&P 500 is back above 5,000 after bouncing +2% from Friday's low. Momentum remains strong, and the next bullish objective is all-time highs.