Chart of the Day - Tuesday, June 22nd, 2021

Today’s Chart of the Day was shared by Michael Antonelli (@BullandBaird). It’s a daily bar chart of the S&P 500 over the past couple of months. Michael points out that in just two days the S&P 500 has recovered nearly all of last week’s 2% loss. As of today’s close, we’re just 0.20% below an all-time closing high. On Friday, we highlighted the deterioration in breadth, and we’re continuing to see weak breadth despite the fact that the S&P 500 is testing record highs. The percentage of S&P 500 stocks above their 50-day moving average actually ticked lower today to 45.5%. You could view this deterioration in breadth as a bearish divergence, or a healthy reset. Either way, all-time closing highs for the S&P 500 appear imminent despite some continued signs of caution.