Chart of the Day - Thursday, September 19, 2024

🏆 Today's Chart of the Day was shared by Shane Murphy (@murphycharts).
 

• The S&P 500 closed at an all-time high for the first time since mid-July. It opened higher by +1.7%, marking its second-largest opening gap in the history of $SPY when trading at a 52-week high.
   
• Shane points out that $SPX is breaking out of a two-month Inverted Head & Shoulders pattern, with a neckline around 5,650. A measured move price target is around 6,250, which is nearly +10% higher. 
   
• The index must follow through to the upside in the coming days to confirm the breakout. If it relapses below the neckline (5,650), this bullish pattern will be invalidated, and things could get ugly quickly. As we know, it's bearish when bullish patterns fail and vice versa. 
   

Takeaway: The S&P 500 broke out to an all-time high today as it resolves out of an Inverse Head & Shoulders pattern. The index *should* continue higher in the coming weeks, but if it violates the neckline, things could turn bearish quickly.