$SPX slope of the 50 DMA, although negative, is diverging from price. Similar to 2002 and 2009 market bottoms. pic.twitter.com/xW9OArhhh7
— Shane C. Murphy (@murphycharts) October 4, 2022
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.”