Today’s Chart of the Day is now available for members.
One of the many breadth measures we monitor is the intraday performance of the S&P 500. We can do this by creating an intraday composite chart of the S&P over any time period. Basically this shows the average path that the S&P has taken throughout the trading day over various time frames. The “smart money indicator” suggests that the more thought out institutional money trades at the end of the trading day, while the more reactionary ‘dumb’ money trades at the open. Thus, late-day rallies are weighted positively by the smart money indicator while early morning rallies are weighted negatively. Conversely, early morning weakness is not a negative with the smart money indicator but late-day weakness is.
The S&P is down 2.5% from its July 26th closing high, but the smart money indicator has really been moving over this time period. We highlight the big move in today’s Chart of the Day. To read this report and access everything else Bespoke’s research platform has to offer, start a two-week free trial to Bespoke Premium. You won’t be disappointed!