Chart of the Day - Monday, October 14th, 2019
October 14, 2019
Today’s Chart of the Day was shared on Twitter by Drew Wells (@DrewTheCharts). It's a daily candlestick chart of the Large-Cap Russell 1000 index ($RUI). The bottom pane of the chart is a breadth indicator showing the percentage of stocks above their 200-day moving average. Drew points out that 50% of the Russell 1000 components remained above their 200-day moving average at the recent lows. 50% is a critical level to watch on this indicator. The Russell 1000 has bounced every time the indicator approaches 50%. However, things tend to get ugly fast when the percentage of stocks above their 200-day moving average falls below 50% like it did in Q4 2018. To learn more about the importance of watching this indicator, check out this report.