Chart of the Day - Friday, January 10th, 2020

Today’s Chart of the Day was shared in a research note by Frank Cappelleri of Instinet (@FrankCappelleri). It’s a daily bar chart of the S&P 500 over the past year. In the note, Frank points out that the S&P 500 has gone 65 trading days without a daily decline of 1% or more. The last time we saw a decline of that magnitude was three months ago, on October 8th, 2019. The S&P 500 has been resilient despite the headlines coming out of the Middle East. A pullback in the next few weeks would be perfectly normal and healthy. When we do inevitably pullback, it will feel jarring, considering the lack of downward volatility over the past few months. Also, the financial media and the perma-bears will probably make a bigger deal out of it than it actually is.