Chart of the Day - Friday, September 27th, 2019

Today's Chart of the Day was shared in a note from Bespoke. It's a chart of the S&P 500 Software group. Some of the largest stocks in this group include; Salesforce, Microsoft, Adobe, and Oracle. In the note, Bespoke points out that the index has been chopping around its 50-day moving average in a tight range since the beginning of August. Since then, the index has crossed its 50-day moving average 25 times. Each time, price never got more than 2% above the moving average and it never got more than 4% below it. Software has been one of the strongest industry groups in the market this year. The direction in which this consolidation resolves will likely have an impact on both the Technology sector as well as the broader market.