Chart of the Day - Wednesday, October 28th, 2020

Today’s Chart of the Day was shared by Brian Lund (@bclund). The S&P 500 notched its worst day in more than four months today. Ironically, October 28th has historically been the strongest day of the year for the index on average over the past 70-years. Brian takes a look at some of the technical damage we saw in today's session. He points out that we lost both the 50 and 100-day moving averages. Price is already below downward sloping 8-day and 21-day moving averages, indicating we're in an intermediate-term downtrend. Traders will be watching how price behaves around the September lows (around 3225) and the 200-day moving average (currently around 3130). In a separate comment, Brian added "Generally institutions only buy stocks above the 200-day moving average, so if that breaks it could get uglier."