Chart of the Day - Thursday, October 31st, 2019

Today’s Chart of the Day was shared on Twitter by Tomasz Hondo (@HondoTomasz). The chart compares the performance of the S&P 500, Developed Markets (ex USA), and Emerging Markets since the start of 2018. Tomasz notes that in late 2018, both Developed and Emerging Markets were diverging from the S&P 500. The S&P 500 was making a series of higher-highs while the other two were making a series lower-highs. A sharp, 20% correction in the S&P 500 followed this divergence in the final three months of 2018. Tomasz brings to our attention that no such divergence currently exists and highlights the fact that all three have made a series of higher-lows in recent months.