Chart of the Day - Wednesday, May 15, 2024

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

• The S&P 500 ETF ($SPY) closed higher for the 10th straight day, marking the longest winning streak in over a decade and the third-longest on record.

• More importantly, $SPY broke out to an all-time high for the first time since March 28th. This officially marks the end of a -5.5% pullback within an ongoing uptrend.

• This wasn't just any old breakout; it was a Breakaway Gap, the most bullish type of breakout. A Breakaway Gap occurs when price gaps above or below a well-defined support or resistance level.

The takeaway: The S&P 500 ($SPY) broke out to an all-time high today for the first time in a month and a half. It gapped above resistance, forming a Breakaway Gap. The bulls were getting a little ahead of themselves in March, but this mild pullback effectively refreshed sentiment to more sustainable levels.