Chart of the Day - Wednesday, September 30th, 2020

Today’s Chart of the Day was shared in a note by Frank Cappelleri of Instinet (@FrankCappelleri). It's a daily candlestick chart of the S&P 500 over the past two months. September is now in the books! At the beginning of the month, we pointed out that September has historically been the worst month of the year for stocks over the past 20-years. While it definitely wasn't the worst month we've seen so far in 2020, this September still lived up to its rocky reputation. The S&P 500 fell about 4% in September, marking the end of a five-month winning streak. The index began pulling back right when the calendar flipped, and at one point, it was off its highs by more than 10%. The month ended on a positive note, with price reclaiming the notorious 50-day moving average today. September's weakness wasn't all that shocking given the context. In the note, Frank explained, "The pullback occurred in the wake of August's run-up, as the 3rd quarter concludes, and in front of the Presidential Election. In other words, it's been a likely spot and time to pause."