Chart of the Day - Monday, November 4, 2024

🏆 Today's Chart of the Day was shared by Yuriy Matso (@yuriymatso).
 

• With tomorrow's election, nobody knows what this week will bring. Fortunately, we have a clear line in the sand for S&P 500 futures... 5,727. 
   
• This level was resistance in July, but Yuiriy points out that it became support in September once it was reclaimed. It served as support three times last month and twice recently. 
   
• If 5,727 breaks, the next potential support level is roughly -6% lower, near the August low of 5,400. Be careful of false moves around this well-defined level. Breaking and reclaiming 5,727 would probably be the most bullish scenario, as it would mark a false breakdown. 
   

The Takeaway: S&P 500 futures are testing a well-defined support level ahead of tomorrow's election. Breaking 5,727 could lead to a retest of the August lows. However, the most bullish scenario would be a false breakdown.