It only took a week to go from overbought to oversold for the S&P 500.
We are now approaching the 52-week moving average on very heavy volume, indicating short term liquidation & panic.$SPY $SPX pic.twitter.com/l5xFd3LYaY
— Tiho Brkan (@TihoBrkan) February 27, 2020
Today’s Chart of the Day was shared on Twitter by Tiho Brkan (@TihoBrkan). It’s a daily candlestick chart of the S&P 500 ETF, $SPY, over the past year. The S&P 500 fell 4.42% today, marking its worst day since the 2011 flash crash when the index fell 6.66%. As of today, the index has officially entered correction territory, as it’s fallen over 10% from its high (-12.11% to be exact). It took just one week for $SPY to go from being overbought and trading at all-time highs, to being oversold and in correction territory. Just one week! Tiho adds that we’re approaching the 52-week moving average. However, the index went on to close below the 52-week moving average by the end of the day. The question on everyone’s mind right now is; will this correction turn into a bear market? Let us know what you think here!