One difference (so far) between this down trend and '01 and '08 was we have yet to see a major break below the 200-week moving average which has been excellent support on many prior market dips. pic.twitter.com/ggaN5IcORY

— Andrew Thrasher, CMT (@AndrewThrasher) December 8, 2022

Today’s Chart of the Day was shared by Andrew Thrasher (@AndrewThrasher). It’s a chart of the S&P 500 over the past 37 years, along with its 200-week moving average. As we approach the end of the year, it’s fair to say 2022 will be remembered as one of the worst years in recent history in terms of persistent weakness. Andrew points out that one major difference between 2022 and other bad years like 2001 and 2008, has been the fact that it successfully tested its rising 200-week moving average. We kissed it in September and October but never extended meaningfully below it. In both 2001 and 2008, the S&P 500 tumbled more than 30% after breaking this long-term moving average. On the other hand, most of the successful tests turned out to be great buying opportunities in hindsight.