Chart of the Day - Monday, December 19th, 2022

Today’s Chart of the Day was shared by Frank Cappelleri (@FrankCappelleri). It's a weekly chart of the Dow Jones Industrial Average over the past three years. Frank points out that the Dow recently formed a failed breakout at its August highs. As we know, failed breakouts often lead to fast moves in the opposite direction, which in this case is lower. Bulls want to see the Dow form the right shoulder of an inverse head & shoulders pattern, by carving out a higher high. However, as long as the Dow is below the August highs, the near-term outlook is lower.