Chart of the Day - Friday, October 30th, 2020

Today’s Chart of the Day was shared on Twitter by Matthew Timpane (@mtimpane). It's a weekly candlestick chart of the S&P 500 over the past year. As Matthew points out, the S&P 500 dropped 5.64% this week, booking its worst week since March. We got a small bounce at the end of today's session with the index closing 1% above its intraday low, but still down over 1% on the day. Bulls will be watching the 3200 like a hawk next week. This level has acted as a key inflection point several times this year. If price fails to hold above it, traders will be looking to the 200-day moving average as the next line of defense, which is about 4% lower from here. As we know, many are anticipating next week to be a volatile one. What can you do to prepare? Have a plan. 1.) Know your timeframe - are you a trader or an investor? 2.) Outline the levels your willing to buy or sell at and adhere to them.