Today’s Chart of the Day was shared on Twitter by @vixsquared. It's a daily candlestick chart of the S&P 500 with a line chart of the Value Line Geometric Composite ($VALUG) overlayed. The Value Line Geometric Composite is an equally weighted index of about 1700 stocks. It uses a geometric average, so the daily change reflects the median stock price change. Some argue that it provides a broader and more accurate representation of the market than popular benchmarks like the S&P 500. As you can see from the chart, $VALUG has been diverging from the S&P 500 as it puts in a series of lower-highs while the S&P 500 makes a series of higher-highs. This is one development that several Technicians have been pointing too as a potential warning sign for the market. For more on this divergence and what it means check out this blog post from Andrew Thrasher.
Chart of the Day - Wednesday, October 9th, 2019
October 9, 2019
