Chart of the Day - Tuesday, August 17th, 2021

Today’s Chart of the Day was shared by Ed Clissold (@edclissold). The S&P 500 hasn't had a pullback of 5% or more all year, which is unusual given that the average year sees about three. Not to mention, the index hasn't had a correction of 10% or more (on a closing basis) since the March 2020 lows. To be more exact, Ed points out that it has been 200 days since the last 5% pullback, which is the longest stretch since 2017, and the 15th longest stretch since 1928. The good news is that a majority of those stretches took place within secular bull markets. In other words, the S&P 500 is seemingly overdue for a pullback by most historical measures, but any potential weakness could prove to be a buying opportunity within a longer-term bull market.