Chart of the Day - Tuesday, October 6th, 2020

Today’s Chart of the Day was shared on Twitter by Grant Hawkridge (@granthawkridge). It's a daily candlestick chart of the S&P 500 year-to-date. Grant points out that the S&P 500 is stuck in a trading range. The February highs (around 3400) are acting as resistance, and the June highs (around 3220) are acting as support. Trendless price action like this can be frustrating for both the bulls and bears. This is an especially light week in terms of economic data, Fedspeak, and earnings. As a result, everyone is focused on the news flow. As we mentioned on Friday, price is the only truth in markets, everything else is just stories, opinions, or noise. It's easy to get caught up in these headlines, but price is the only thing that is going to make or lose you money at the end of the day. So tune out the noise and focus on what matters. The levels are clearly defined. If we're above the February highs, the risk is to the upside, and if we're below the June highs, the risk is to the downside. But as long as we're stuck between these two key levels, expect the chop to continue.