Today’s Chart of the Day was shared on Twitter by Yuriy Matso (@yuriymatso). It's a daily candlestick chart of the S&P 500 over the past three years. Yuriy points out that the S&P 500 has formed a potential Bull Trap or Failed Breakout as it's also referred to. This occurs when price breaks out but fails to hold above that breakout level, often leading to a sharp move in the opposite direction. As you can see, the last two major declines started with Failed Breakouts. The good news is that price has not confirmed this bearish pattern yet, so it's still too early to act on. However, if price closes below 3700 in the near-term, watch out below!
Chart of the Day - Thursday, March 25th, 2021
March 25, 2021
