Chart of the Day - Tuesday, February 13, 2024

🏆 Today’s Chart of the Day was shared Mark Ungewitter (@mark_ungewitter).

• The S&P 500 dropped 1.37% today, marking the second-worst day of 2024. It felt much worse because volatility has been absent since October, and the selling was notably broad today.

• The NYSE had over 90% downside volume today. Mark points out that it’s rare to see such selling pressure shortly after an all-time high.

• All four prior instances occurred as the market was losing momentum after an advance. It continued to make all-time highs in three of the four cases, but not for very long.

The takeaway: The sample size is small, but this has historically been an ominous sign.