Chart of the Day - Tuesday, September 21st, 2021

Today’s Chart of the Day was shared by Jonathan Harrier (@jonathanharrier). The chart shows the percentage of S&P 500 stocks that are trading above their 10-day moving average. Jonathan points out that short-term breadth has gotten extremely oversold amid the recent pullback, with just 12% of stocks in the S&P 500 trading above their 10-day moving average. in the past 5-years, we've had 18 readings below 20%. A month later, the S&P 500 has historically been higher 83% of the time for an average gain of 3.06%, and a median gain of 4.61%. For more on this, check out the full backtest results here.