Chart of the Day - Thursday, December 9th, 2021

Today’s Chart of the Day was shared by Drew Wells (@DrewTheCharts). It's a chart of the S&P 500 Low Volatility Index over the past year, with the S&P 500 below it. The Low Volatility Index tracks the 100 most boring (least volatile) stocks in the S&P 500, including PepsiCo, Verizon, Procter & Gamble, Hershey's, and more. Drew points out that Low-Volatility stocks are breaking out to all-time highs, while the S&P 500 stalls at resistance. This isn't the most encouraging development for the bulls. Typically, you want to see the more aggressive High Beta stocks leading and breaking out. Instead, market participants are hiding out in the safer, less volatile names. The tape continues to be two-sided, but this is one area of the market that is currently working.