Chart of the Day - Friday, August 16, 2024

🏆 Today’s Chart of the Day was shared by Mike Zaccardi (@MikeZaccardi).

• The S&P 500 had a perfect week, rising every single day. It closed higher by +3.93%, marking the best week since exiting the correction lows last October.

• $SPX needed to reclaim 5,400 this week, and it did so with conviction. It also reclaimed the 50-DMA, the neckline of a Head & Shoulders Top, the 61.8% Fibonacci retracement, and the VWAP from all-time highs.

• $SPX is only -2% below record highs after correcting -8.5% on a closing basis and -9.7% on an intraday basis. At this point, there’s virtually no resistance to stop it from breaking out next week.

Takeaway: The S&P 500 rose every day this week, closing higher by +3.9%. Not only was it the best week of the year, it was the best week since exiting the correction last October. After reclaiming 5,400, the only thing on the bull’s to-do list next week will be all-time highs, which are about +2% higher.