Chart of the Day - Thursday, March 4th, 2021

Today’s Chart of the Day was shared on Twitter by Pivot Analytics (@pivotanalytics). The S&P 500 closed below its 50-day moving average for the first time since late January today. While conventional wisdom would say this is bearish, the data suggests otherwise. Pivot Analytics examined all the prior instances where SPY closed below a rising 50-day moving average. Two weeks later, SPY was higher nearly 70% of the time for a modest average gain of 0.72%.