Chart of the Day - Monday, March 31, 2025

🏆 Today's Chart of the Day was shared by Larry Thompson (@HostileCharts).
 

• The S&P 500 ($SPY closed higher by +0.7% today despite opening lower by -1.1%. While today’s intraday action was bullish, $SPY finished March with a loss of -5.9%—its worst month since December 2022.
   
• $SPX undercut its recent low at $551 before reversing higher this morning. Larry points out that breadth and momentum refused to make new lows, representing a bullish divergence. 
   
• At the March 13th low, less than 20% of stocks were above their 20-day moving average compared to nearly 50% today. Daily RSI made a higher low today while avoiding oversold territory (below 30). This is a bullish condition, but further confirmation is necessary.
   

The Takeaway: Breadth and momentum refused to break down today while the S&P 500 revisited its March 13th low. These bullish divergences were absent at the previous low, but the current bounce must exceed the previous bounce for confirmation.