Chart of the Day - Wednesday, September 18, 2024

🏆 Today's Chart of the Day was shared by Eric Conrads (@conradseric).
 

• The S&P 500 snapped a seven-day winning streak, falling -0.29%. It was up +1.0% before reversing sharply lower after the Fed cut interest rates by 50bps this afternoon. 
   
• Eric points out that $SPY formed a potential Shooting Star candle today, featuring a long upper wick. It trapped the bulls for the second straight day, breaking out to all-time highs intraday before reversing lower. This bearish reversal candle will be either confirmed or invalidated by tomorrow. 
   
•  Eric adds that RSI has formed a bearish momentum divergence. It hasn't been overbought in two months, creating another lower high today. 
   

Takeaway: After the Fed cut interest rates by 50bps this afternoon, the S&P 500 reversed lower, creating a potential Shooting Star candle. It has been rejected at all-time highs twice this week, and momentum is starting to wane. The index doesn't look very healthy as we enter what has historically been the worst half of the worst month.