Today’s Chart of the Day was shared on Twitter by Fred Imbert (@foimbert). It is a bar chart of the S&P 500 over the past six months. April is now in the books, and it turned out to be the strongest month for the S&P 500 since 1987. The index has staged an impressive 30% rebound from the March 23rd low. However, Fred points out that a confluence of overhead resistance levels could prevent this rally from reaching all-time highs. For starters, the index needs to get above the 61.8% Fibonacci retracement of the waterfall decline, around 2,930. If price passes this first test, it will quickly be faced with another potential speed bump - the 200-day moving average around 3,000. In addition, tomorrow marks the start of the "worst six months" for the index according to seasonality. Given these headwinds, "Sell in May & Go Away" doesn't seem like the worst idea right now.
Chart of the Day - Thursday, April 30th, 2020
April 30, 2020
