Chart of the Day - Friday, May 31, 2024

🏆 Today’s Chart of the Day was shared by Caleb Franzen (@CalebFranzen).

• The S&P 500 avoided a failed breakout in the final 10 minutes of the week by reclaiming the March highs, around 5,250, today. It was down as much as -0.84% this afternoon but closed +0.80%.

• This reversal was exactly what the bulls needed. Especially given the negative breadth and momentum divergences that have developed recently. Those divergences still exist, but price action is more important.

• The index still closed lower on the week by -0.51%, but higher on the month by +4.80%. This was the best May for the S&P 500 in over a decade, and it engulfed the prior month’s candle.

The takeaway: The S&P 500 repaired a lot of technical damage today. It still closed slightly lower this week but notably higher this month. The index is less than 1% from record highs as June kicks off on Monday.