Chart of the Day - Thursday, January 30th, 2020
January 30, 2020
Today's Chart of the Day was shared on Twitter by Jon Krinsky (@jpkrinskypga) via Carl Quintanilla (@carlquintanilla). It's a daily candlestick chart of the S&P 500 with the 20-day moving average (purple), 50-day moving average (green) and 200-day moving average (yellow). The S&P 500 broke below the 20-day moving average earlier this week. While it's still trading about 3% above the 50-day moving average, Jon warns, "Should the 50 DMA not hold, the risk is a bigger 5-6% move down as there is a 'volume pocket' towards the 3,000 level." We like this chart because it's yet another great example of how charts enable you to completely tune out the noise while still managing risk responsibly and objectively.