Chart of the Day - Tuesday, September 20th, 2022

Today’s Chart of the Day was shared by Rob Hanna (@QuantifiablEdges). The Fed is expected to raise interest rates by 75bp tomorrow. Many are anticipating the market to sell off in response, but Rob points out that the S&P 500 has actually rallied on all 4 of the rate hike announcement days that we've had this year. If anything, people should be more concerned about the day after the announcement considering 2 of the 4 dates listed above were followed by a >3% drop the next day. To be clear, we're not predicting how the market will react tomorrow. The key point here is that one day doesn't make a trend. The longer-term trend will remain lower regardless of tomorrow’s action.