Chart of the Day - Wednesday, July 24, 2024

🏆 Today’s Chart of the Day was shared by Optuma (@Optuma).

• The S&P 500 had its worst day since December 2022 today, dropping -2.32%. This was the first -2% decline in 356 days, ending the longest streak without a -2% decline since 2007.

• The weakness was primarily attributed to the Magnificent 7. For the longest time, this handful of Mega Cap stocks covered up broad weakness beneath the surface of the S&P 500.

• We’re starting to see the opposite, where the Magnificent 7 is masking some of the broadening strength beneath the surface. Optuma points out that 156 stocks in the S&P 500 closed higher today. Over the past decade, the index has never had more advancers on a -2% day.

The Takeaway:  The S&P 500 had its worst day since December 2022 today, dropping -2.32%. Despite today’s jarring decline, nearly a third of the index closed higher. It wasn’t enough to offset the weakness from the Mag 7, but this is still a healthy way to correct.