Today’s Chart of the Day was shared by Shane Murphy (@murphycharts). Shane points out an interesting divergence between the S&P 500 and the slope of its 50-day moving average. The S&P 500 undercut its June lows last week, while the slope of its 50-day moving average wasn't nearly as negative as it was at the June lows. The charts on the right show that both the 2002 & 2009 bear market bottoms featured a similar divergence. In a comment to The Chart Report, Shane said "Other bottoms in 1962, 1966, and 1982 displayed a similar divergence. However, it failed to mark the bottom in 1970 & 1973. Five out of seven is still good enough to grab my attention."
Chart of the Day - Wednesday, October 5th, 2022
October 5, 2022
