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Today’s Summary
Monday, May 11th, 2020
Indices: US Stocks were mixed in today’s session with the Dow Jones Industrial Average falling 109 points or 0.33%. The S&P 500 was unchanged (0.02%), while the Nasdaq rose 0.78%. The Russell 2000 was the weakest of the major indices, dropping 0.63%.
Sectors: Health Care led, gaining 1.72%. Financials lagged, falling 1.93%.
Commodities: The June Crude Oil futures contract moved lower by 2.43% to $24.14 per barrel. Gold futures fell 0.93% to $1,698 per ounce.
Currencies: The US Dollar Index jumped 1.14%.
Interest Rates: The US 10-year Treasury moved higher to 0.716%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared in a research note by Frank Cappelleri of Instinet (@FrankCappelleri). Frank points out that the Volatility Index ($VIX) made a new low last week, while the Volatility of the Volatility Index ($VVIX) did not. This divergence is a sign that Volatility could pick-up again in the coming weeks. Keep in mind, a similar divergence between $VIX and $VVIX preceded the February-March crash. Will this divergence prove to be a timely signal once again? Only time will tell, however, this is certainly a potentially bearish development worth monitoring in the near-term.
Quote of the Day
– Pythagoras (Greek Philosopher)
Top Links
Weekly S&P 500 #ChartStorm – Topdown Charts
Callum Thomas highlights ten insightful charts that speak to the current market environment.
Mid Caps Strengthen As Markets Test Key Price Levels – Your Daily Five
In this video, Grayson Roze of StockCharts.com breaks down five important charts to keep an eye on right now.
Most Gains Come When Traders are Sleeping – SentimenTrader
Jason Goepfert points out that most of the stock market’s gains have occurred during the overnight trading hours as opposed to the day session.
Podcast with Market Strategist, Jordan Kotick – Technical Analysis Radio
In this podcast, host JC Parets, interviews Market Strategist, Jordan Kotick. He discusses the importance of analyzing the markets from a global perspective.
Banks Continue to Send Bearish Divergence Message at 800 Pound Resistance – Kimble Charting Solutions
Chris Kimble explains that the Bank Index, $BKX, could send a bearish signal to the broader market if it fails to break through a critical resistance level in the next few weeks.
Top 10 Tweets
The Nasdaq Composite rallied more than 0.75% today.
On the NYSE, more than 73% of volume flowed into declining securities.
Since 1971, this has happened twice before: March 22, 2001, and November 27, 2007.
Make of it what you will.
— Jason Goepfert (@jasongoepfert) May 11, 2020
Nasdaq 100 $NDX closing in on that gap pic.twitter.com/LOdWD5aAt4
— ATMBiotechCharts (@ATMcharts) May 11, 2020
$SPX now 7.3% above its 50MA – most since 2011. 75% of members now above 50MA, with 56 crossing above on Friday, incl $PG, $BAC, $C, $AXP, $CME, $FDX, $GM, $F: pic.twitter.com/vAs33cTOoO
— Optuma (@Optuma) May 11, 2020
2020’s market whipsaw hasn’t upset the trend of S&P 500’s Top-5 and 10 stocks from gaining market share. Thru 4/29 each added 3.3% to its weight; well clear of Y2K peaks. This is 1st time in 30 yrs the Top-5 $SPY firms have added this much weight in a 3- or 6-mo window. pic.twitter.com/rGrNZcBGFD
— The Leuthold Group (@LeutholdGroup) May 11, 2020
Small traders continue to be near record net-short in S&P future positioning. pic.twitter.com/WbX8OAjS6l
— RenMac: Renaissance Macro Research (@RenMacLLC) May 11, 2020
One of my most important Models is approaching the most overbought level in history.
This is the 18th signal in 20+ years – most signals WITHOUT a Breadth Thrust led to big declines.
Stocks could rally into month-end, but 3Q20 is at full risk of a bigger Tactical regime shift. pic.twitter.com/dSP0Aev7pi
— Macro Charts (@MacroCharts) May 11, 2020
SPY/TLT has broken above an important resistance level. Closing and sustaining above will be an important turning point$SPY $TLT $SPX $VIX pic.twitter.com/lgoLRcMRPa
— Bhagyashree (@sunsofttech) May 11, 2020
If a new bull market in precious metals is truly underway, we want to see Silver vs. Gold participating in the move higher.$SLV $GLD $DBP $GC $SI pic.twitter.com/egC369erq0
— Shane C. Murphy (@murphycharts) May 10, 2020
The Bitcoin halving due to take place today at 4 PM EST. Well anticipated but volatility is still picking up. The blue line is $BTCUSD's 5-day to 20-day ATR ratio pic.twitter.com/CLRkbZHdwT
— John Kicklighter (@JohnKicklighter) May 11, 2020
You know what's at a new All Time High? That isn't a tech name ?$CMG Chipotle.
Chipotle is at an all time high in a global pandemic. pic.twitter.com/hEkvcwzNCG
— Michael Antonelli (@BullandBaird) May 11, 2020