Chart of the Day - Friday, June 18th, 2021

Today’s Chart of the Day was shared by Ryan Detrick (@RyanDetrick). It’s a daily candlestick chart of the S&P 500 over the past year, with several breadth metrics below. Things continue to look ugly beneath the surface of the market right now. Over the past month, the S&P 500 made a new high, and yet, fewer and fewer stocks participated in that strength. Price has begun to soften this week, but we’re still only 2% off of Monday's record highs. As Ryan notes, after a 90% rally since March 2020, it wouldn’t be surprising to see some sort of pullback or correction. Especially when you consider the S&P 500’s weak seasonal tendency around this time of year. On an optimistic note, the primary trend is still higher, and there is a lot of evidence that suggests that any short-term market weakness could prove to be a long-term buying opportunity.