Chart of the Day - Friday, February 21, 2025

🏆 Today's Chart of the Day was shared by Trend Spider (@TrendSpider)
 

• Stocks sold off Friday, with the S&P 500 ($SPY) and Nasdaq 100 ($QQQ) dropping -1.7% and -2.1%, respectively. 
   
• Both indices made record highs earlier this week before Friday's sell-off. This qualifies as a  Failed Breakout, or Bull Trap, as it's also called. 
   
• Caution is warranted if $SPY and $QQQ remain below their former highs. As the saying goes, "From failed moves come fast moves in the opposite direction."
   

The Takeaway: After a nasty failed breakout this week, $SPY and $QQQ are vulnerable to further downside in the near term.