Chart of the Day - Monday, October 14, 2024

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

• Larry points out that the S&P 500 Top 50 ETF ($XLG) closed at an all-time high today after gapping above resistance from the July peak, around $48. 
   
• When price gaps above a well-defined resistance level like this, it's called a Breakaway Gap, the most bullish type of breakout. 
   
• $XLG is resolving higher out of a three-month Ascending Triangle pattern. This bullish pattern is defined by horizontal resistance at $48 and rising trendline support. 
   

Takeaway: It's hard to be bearish when the heaviest stocks in the market are resolving higher.