Chart of the Day - Thursday, May 30, 2024

🏆 Today’s Chart of the Day was shared by Andrew Thrasher (@AndrewThrasher).

• The S&P 500 closed slightly below its former highs today, which are around 4,250.

• A weekly close below this critical level would confirm a failed breakout. As we know, failed breakouts can get ugly fast.

• Andrew also points out that 14-week RSI has formed a bearish momentum divergence. Price made all-time highs last week, while RSI couldn’t even reach overbought territory (above 70).

The takeaway: The S&P 500 is in a precarious spot. The bulls must reclaim 4,250 tomorrow to avoid a failed breakout while breadth and momentum are diverging.