Chart of the Day - Thursday, January 23, 2025

🏆 Today's Chart of the Day was shared by Trend Spider (@TrendSpider). 
 

• After gapping higher for three consecutive days, the S&P 500 ($SPY) opened lower today. However, it pushed higher throughout the session, registering its first all-time high of the new year. 
   
• $SPY peaked in early December before pulling back -4.5% on a closing basis. The market typically takes the stairs up and the elevator down. However, it only took 8 days to recover from a 22-day pullback.
   
• With $SPY in uncharted territory, there's virtually no price memory to prevent it from making a new leg higher. The next potential Fibonacci target is near $630, representing the 161.8% extension of the recent pullback. 

The Takeaway: The S&P 500 achieved its first all-time high of the new year today after staging a bullish intraday reversal. The index took the stairs down and the elevator up, generating momentum for the next potential leg higher.