Chart of the Day - Tuesday, April 30, 2024

🏆 Today’s Chart of the Day was shared by Optuma (@Optuma).

• The S&P 500 fell -4.16% in April, ending a five-month winning streak. It gained +25% throughout that five-month streak, marking the sharpest rally since the Covid recovery in 2020.

• Using a monthly candlestick chart, Optuma points out that $SPX can afford another -9% before breaking the current uptrend.

• The prior swing high from July is at 4,590. This level also represents the 38.2% Fibonacci retracement of the bull market rally off the Oct. '22 low.

The takeaway: $SPX fell -4.16% in April after one of the sharpest rallies in recent history. Despite the recent stumble, $SPX can handle another -9% before damaging the long-term uptrend.