The consensus bearish narrative toward equities seems overly confident. The S&P 500 may be retesting its breakout point rather than starting a new down leg. RSI and MACD lows from December are worth keeping an eye on. pic.twitter.com/mTywCPnyJG
— Gina Martin Adams (@GinaMartinAdams) February 24, 2023
Today’s Chart of the Day was shared by Gina Martin Adams (@GinaMartinAdams). The S&P 500 dropped -2.67% this week, marking the worst week so far in 2023. At the end of January, bulls cheered as the S&P 500 broke above its 200-day moving average and its downtrend line. We’re still above both, however, the bulls seem much less enthusiastic than they were when we initially broke out. It’s quite common to see a retest after a highly anticipated breakout. Gina suggests that this is nothing more than a classic retest, so long as RSI and MACD continue to hold above their December lows.