Chart of the Day - Monday, December 23rd, 2019

Yes. $SPX is up more than 37% in 251 trading days! #winning pic.twitter.com/SnKgbS8PdU

— ? I. Vodenitcharov CFA CMT (@iv_technicals) December 23, 2019

Today’s Chart of the Day was shared on Twitter by @iv_technicals. It's a chart of the S&P 500 index over the past 20 years. The indicator in the bottom pane shows the 251-day rate of change for $SPX. There are around 251 trading days in a year. Therefore this indicator is similar to the 12-month rate of change or year-over-year performance.  @iv_technicals points out that the index is currently up 37% over the past 251-days. As you can see from the chart, this is the strongest 251-day performance in nearly a decade. This "extreme" performance doesn't necessarily mean that the top is near. In fact, if you look at past scenarios where the 251-day rate of change was this high, the market was still able to continue higher. After all, capital tends to flow where capital is being rewarded.