The Setup for the Next Leg Higher ๐ The Chart Report
Chart of the Day
๐ Today's Chart of the Day was shared by Henry.
After another V-shaped recovery reminiscent of last year, the S&P 500 has surged roughly +10% in just 10 trading days and now sits less than 0.25% below new all-time highs.
This advance has occurred without leadership from the marketโs largest stocks, and if those names begin to outperform the broader market, its likely to act as a powerful tailwind due to the weighting of the indexes.
At the same time, Consumer Discretionary is pushing to new two-month highs relative to Consumer Staples, with the ratio attempting to reclaim the neckline of its former breakdown level.
The Takeaway: The S&P 500 is within striking distance of new highs after a sharp rebound, with outperformance from the Magnificent Seven set to support the next leg higher.
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