Chart of the Day - Monday, February 17, 2025

🏆 Today's Chart of the Day was shared by Frank Cappelleri (@FrankCappelleri).
 

• The S&P 500 built upon Friday's reversal today, rising +0.64%. Today marked the first back-to-back gain since the correction began, but the index remains down -7.6% on a closing basis.
   
• The correction began nearly a month ago when a bullish short-term pattern failed. In healthy uptrends, bullish patterns and breakouts should work, while bearish patterns and breakdowns should fail. 
   
• Frank points out that the most recent bullish pattern has been successful so far. This five-day base is tiny, but Frank notes that successful small patterns build larger bullish patterns.
   

The Takeaway: Today marked the first back-to-back gain for the S&P 500 since the correction began. A short-term base that formed last week is working so far. However, if this bullish pattern falls apart, it will be a red flag.