Chart of the Day - Wednesday, August 7, 2024

🏆 Today's Chart of the Day was shared by Todd Sohn (@Todd_Sohn).

• The S&P 500 was up as much as +1.73% earlier today but gave it all back, closing down -0.77%. The index is now -8.25% off record highs (on a closing basis).

• $SPX reached a max drawdown of -8.5% on Monday, its worst drawdown of the year.

• Corrections never feel healthy, but Todd reminds us that a 5-10% correction is normal. In fact, it would be odd if we didn't correct at least -5%.

The Takeaway: Recent volatility in the S&P 500 has been completely normal so far despite the $VIX spiking to its 3rd highest level in history on Monday.