Chart of the Day - Friday, April 26, 2024

🏆 Today’s Chart of the Day was shared by Frank Cappelleri (@FrankCapperlleri).

• It was a busy week for the Communication Sector ($XLC), as some of its top components reported earnings ($META, $GOOG, $TMUS, $T). These four companies represent over 50% of the sector.

• $XLC completed a rare but bullish Abandoned Baby pattern today. It gapped down -3.5% on Thursday as $META slid -10.5%. However, it gapped up +2.7% on Friday as $GOOG surged +10.0%.

• Frank points out that today's move also invalidated a Head & Shoulders Top. As we know, it's bullish when bearish patterns fail. In fact, the rally in question began as a Failed Top in October.

The takeaway: The Communications Sector ($XLC) survived a stressful week, gaining +0.81%. It created a rare bullish pattern today while invalidating a bearish one.