Chart of the Day - Thursday, August 1, 2024

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

• The S&P 500 kicked off August on a bearish note today, dropping -1.37%. The index erased most of yesterday’s gains, printing an infamous Bearish Engulfing candle.

• Andrew notes that $SPX is caught between two moving averages. It launched off its rising 50-DMA (blue) yesterday but closed at it again today after failing to reclaim its declining 20-DMA (red).

• $SPX also failed to reclaim the rising trendline off the October ’23 low again today.

The Takeaway: The short-term trend is turning lower, but the longer-term trend remains higher. If the 50-DMA breaks, the 200-DMA is currently ~8% lower, around 5,000.