Chart of the Day - Friday, May 16, 2025

🏆  Today's Chart of the Day was shared by Walter Deemer (@WalterDeemer). 
 

• The S&P 500 ($SPY) closed higher in all five sessions this week, gaining +5.3%. This marks the second ‘perfect week' in the past month, as a V-shaped recovery off the April lows unfolds.
   
• Walter points out that $SPY opened firmly above its 200-day moving average on Monday and never looked back, leaving an unfilled gap on both the daily and weekly charts. 
   
• To fill this week's gap, $SPY would need to drop roughly -4.5% to $567.50. The gaps on April 27th and May 1st were also left unfilled. As Walter often notes, "How quickly gaps get filled—if at all—gives us an idea of how strong the underlying trend is."
   

The Takeaway: In the past month alone, $SPY has logged two ‘perfect weeks’ and three unfilled gaps, reflecting a strong underlying bid and solid momentum off the April low.