Chart of the Day - Tuesday, June 25, 2024

🏆 Today’s Chart of the Day was shared by Mark Ungewitter (@mark_ungewitter). 

• It feels like everyone is a breadth expert these days. However, the most experienced technicians we follow don't seem nearly as concerned.

• Breadth has been persistently bad since the bull market began, yet the S&P 500 keeps climbing. If the index was able to survive when breadth was poor, it will likely thrive if breadth starts to improve.

• Mark points out that the Equal Weight S&P 500 has coiled into a tight triangle pattern, suggesting a large move is coming. It could resolve lower, but the path of least resistance is higher, considering it has reached a major support level relative to the S&P 500.

The takeaway: The Equal-Weight S&P 500 is primed for a large move in either direction, but the path of least resistance is higher. A potential breakout would symbolize breadth expansion.