Chart of the Day - Monday, March 2nd, 2020

weekly RSI still confirming the structural bull trend. I really like visualizing the change in RSI regime when the structural trend shifts. If weekly RSI gets oversold that would be a big warning sign $SPX pic.twitter.com/qctWps3WO0

— BostonCharts (@bostonchaahhts) March 2, 2020

Today’s Chart of the Day was shared on Twitter by BostonCharts (@bostonchaahhts). It’s a long-term line chart of the S&P 500 index going back more than two decades. Last week was the worst week for the S&P 500 since 2008, with the index crashing over 11%. BostonCharts points out that the long-term structural uptrend remains intact, despite last week's sharp sell-off. He adds that the weekly RSI (bottom pane) remains in a bullish regime, as it has yet to reach oversold conditions. We like this chart because it provides some much needed long-term perspective to last week’s epic decline. Also, it serves as a solid roadmap for investors looking to manage risk in this highly volatile market environment.