Chart of the Day - Thursday, July 25, 2024

🏆 Today’s Chart of the Day was shared by Jamie Saettele (@JamieSaettele).

• The S&P 500 ($SPX) closed lower for the third straight day after fumbling an attempted rebound. It was up nearly +1.2% this afternoon but went negative in the final 30 minutes, closing lower by -0.51%.

• $SPX tried to reclaim a rising trendline that was violated yesterday, but it was rejected. This trendline has existed since the October 2023 low. It coincides with the June highs, just south of 5,500.

• Jamie points out that this rejection doesn’t bode well for the bulls in the near term. The index is still trending higher over most time frames, but the rally off the October lows has cracked after gaining as much as +38% in nine months.

The Takeaway: The S&P 500 tried to rebound today but gave it all back and then some. It was rejected after testing the underside of a broken trendline. The rally off the October 2023 lows has officially cracked, and further downside is likely in the near term.