Chart of the Day - Tuesday, June 2nd, 2020

If you think civil and political unrest should be slamming equities, I submit to you the year 1968https://t.co/RXQq2hF84Q

— ukarlewitz (@ukarlewitz) June 2, 2020

Today’s Chart of the Day was shared on Twitter by Urban Carmel (@Ukarlewitz). The S&P 500 has drifted higher over the past few sessions, in the face of some of the worst civil unrest we’ve seen in America in decades. Many are shocked that stocks aren't down more, some are even angry that price isn’t confirming the grim narrative at hand. For better or worse, the reality is that Mr. Market doesn’t have a heart or a brain. News doesn’t directly move price - liquidity, and supply/demand dynamics do. Urban’s chart shows the S&P 500 between 1963 and 1974, with one particularly tumultuous year, 1968, highlighted in yellow. The S&P 500 managed to rise 7% that year despite several tense moments of sociopolitical upheaval, including the Tet Offensive, DNC protests, and the assassinations of Martin Luther King Jr. and Robert F. Kennedy. It's harder than ever to ignore the news right now. The images we see every day stir up a lot of emotions. However, as a technical analyst, it’s essential to remain objective by separating news from price action. For more on this, check out this article.