Chart of the Day - Tuesday, August 6th 2019

Today’s Chart of the Day was shared on Twitter by Ryan Detrick of LPL Financial Research. The chart shows the number of 5% pullbacks in the S&P 500 that have occurred each year going back to 1990. He points out that on average, the index experiences 3.3 separate 5% pullbacks per year. So far in 2019, we've now had two. Ryan and the team at LPL began calling for a late-summer pullback after the S&P 500 reached their year-end target of 3,000 at the end of July. Their reasoning was based on August seasonality, and the fact that we had only had one 5% pullback in 2019 up to that point. Sure enough, the Dow sold-off at the beginning of August and we got the 5% pullback that Ryan and the team at LPL anticipated.