Chart of the Day - Tuesday, December 3rd, 2019

Today’s Chart of the Day was shared on Twitter by Tom Bruni (@BruniCharting). It's a weekly candlestick chart of the Dow Jones Industrial Average going back over a decade. Tom jokes that "Equities are in trouble here." It might feel this way with the Volatility Index ($VIX) spiking over 50% in the past four sessions. However, it's important to note that this spike is coming after a calm period of relatively low volatility. This chart does a great job of putting the recent weakness into perspective. When you take a step back and look at Equities over the long term, this week's move is nearly invisible. If anything, it still looks like the market is breaking out from a two-year consolidation period and in the process of making another leg higher.