Chart Of The Day: The Pattern Is Strong With This One

Last week, had you searched Google News for “Stocks Crash,” you would have received over 16,000 results. At that time the S&P 500 was barely down 1% year-to-date. Granted, some momentum names were falling 10% or more, but there was still plenty of strength throughout the market.

It was hardly a market crash.

The largest exchange-traded fund for utilities, $XLU, is now up about 12% this year. The largest energy sector ETF, $XLE, is up 5%.

Today, the S&P 500 $SPX once again flipped green for the year. It’s now up a little more than 1% since 2014 started.

Could this be the start of another leg higher?

A particular chart caught our eye today. It shows that in February, a similar sell-off occurred and its v-shaped pattern is nearly identical to the drop that just happened over the last few weeks. Following the February correction the S&P 500 rose steadily and eventually hit a new all-time high. Take a look:

Looking more and more like Feb 2014 $SPY $SPX $ES_F

— vader (@vader7x) Apr. 17 at 01:15 PM

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