Chart of the Day - Thursday, September 3rd, 2020
September 3, 2020
Today’s Chart of the Day was shared on Twitter by Mark Ungewitter (@mark_ungewitter). The chart shows the S&P 500 over the past three years and the Volatility Index ($VIX) at the bottom. The S&P 500 had its worst day in over two months today after having its best day in over a month just yesterday. Today's price action has caused some concern that the top is in. Mark points out that cyclical tops don't tend to happen when the VIX is this high. If anything, Stocks tend to bottom when the VIX is near current levels. This pullback may deepen into a correction as Stocks work through their short-term overbought conditions. But it would be pretty rare to see the S&P 500 put in a major cyclical top with the VIX this elevated.