Chart of the Day - Thursday, August 24, 2023

Today's Chart of the Day was shared by Optuma (@Optuma). The S&P 500 was up as much as +0.50% this morning, but it ended the day down -1.35%. It closed at session lows, forming a bearish outside reversal candle that engulfed the prior three sessions. The S&P 500 formed a similar outside reversal candle on July 27th, just two days before it peaked on a closing basis. Optuma notes that we hit a seven-day high and a three-day low today. On a high-to-close basis, today was the biggest reversal since March 22nd, even larger than the one we saw last month near the peak. Within the S&P 500, Tech suffered the most dramatic reversal, closing -3.52% off its intraday high. This price action is bearish in the near term as we continue to stumble through a seasonal rough patch.