Chart of The Day – June 8, 2020

By: Chris Wenner in Charts 06/08/2020

The S&P 500 is now trading more than 10% above its 50-day moving average (1-yr, daily chart).  This is a testament to the velocity of this upward move.  Comparing to a 5-yr, daily chart, the S&P 500’s current distance over its 50-day moving average today is significantly wider than any other time in this period (or almost any time that I can find going back much longer than 5 years).

As with most single factors (technical and/or fundamental), isolating 1 or 2 of them and calling a major upcoming move or reversal doesn’t work.  However – I think the chips are stacking up for a near-term pullback (maybe after June OPEX) as there seems to be many factors that all point to overbought and expensive.

CW

 

By: Chris Wenner

Managing Director

Jonathan Molchan

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