Chart of the Day - Friday, October 2nd, 2020

Today’s Chart of the Day was shared on Twitter by Michael Turvey of TD Ameritrade (@MikeTurvey_TDA). It's a weekly chart of the S&P 500 over the past two years. The Dow, S&P, and Nasdaq all closed lower today. Despite the weakness in the major indices, Michael points out that there were some bullish aspects of today's price action. The Russell 2000 and equal-weight S&P 500 both closed higher on the day. In fact, both outperformed the major indices throughout the week. This is evidence of healthy risk appetite and broadening participation, both of which support the bull case. There is a lot of noise out there right now, and it's likely to get louder as we approach the election. Rather than trying to interpret how headlines will impact price, just listen to what the market is telling you through price action. Price is the only truth in the markets. The rest is just opinions, stories, or noise. If the information is important enough, price will discount it, and it will show up on the chart. So please, put down your TV remote and pull up a chart.