Chart of the Day - Thursday, January 16th, 2020

Today’s Chart of the Day was shared on Twitter by Jim Bianco (@biancoresearch). It's a daily bar chart of the S&P 500 ($SPX) over the past year. The index crossed 3300 for the first time ever today. Not long ago, we were celebrating the 3000 milestone. $SPX has gone 69 trading days without a daily decline of 1% or more, and over a year without a correction of 10% or more. This lack of volatility has many arguing that $SPX is overdue for a correction. James points out that a 10% correction from current levels would bring us down to former resistance right above 3000. He adds that a 10% correction would cause everyone to "freak out," and the financial media would spin up some daunting narrative to explain the decline. The reality is that a 10% correction wouldn't cause any major technical damage. $SPX would still be trading above the former highs, and in a primary uptrend.