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Today’s Summary
Wednesday, June 19h, 2019
Indices: US stocks ended higher in today’s session with the Dow Jones Industrial Average gaining 38 points or 0.15%. The Nasdaq led the rest of the major indices for the second day in a row, finishing up 0.42%.
Sectors: Healthcare led, gaining 0.90%. Materials lagged, falling 0.55%.
Commodities: WTI Crude Oil futures were lower by 0.26% to settle at $53.76 per barrel. Gold futures were slightly lower by 0.10% and settled at $1,348 per ounce.
Currencies: The US Dollar Index fell 0.43%.
Interest Rates: The US 10-year Treasury yield fell to 2.028%.
Here are some of 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 from Andrew Adams and Jeff Saut. The chart examines the correlation between the U.S. Dollar Index and the S&P 500 over the past 10-years. There’s a lot of speculation and discussion over how the Dollar will impact the stock market however, this chart proves that no meaningful relationship exists between the two over the past 10 years. Andrew uses the 20-day correlation in the lower panel of the chart to explain that if there was, in fact, a positive/negative correlation between the two, the indicator would consistently stay near 1 or -1.
Quote of The Day
“To expect the unexpected shows a thoroughly modern intellect.”
– Oscar Wilde (Irish Playwright)
Top Links
What Typically Happens When These Charts Flip – Chris Ciovacco
Chris Ciovacco takes a look at past examples of when the 100-day moving average crossed the 300-day moving average. He makes a strong case for using these two moving averages to signal major market tops and bottoms.
Can Stocks Really Gain 20% This Year – LPL Financial Research
In this note, LPL maintains its prediction that the S&P 500 will gain nearly 20% in 2019, something it hasn’t done since 2013. They point out that it’s rare for the market to go five consecutive years without a 20% gain.
Swiss Markets Break Out to All-time Highs – All Star Charts
JC Parets brings up the fact that Switzerland’s stock market index just broke out to new all-time highs. He also spells out what this could mean for European Equities in general.
The Last Two Times the S&P 500 Did This, The Market Topped Out – CNBC
In this clip from CNBC, technical analyst, Katie Stockton presents her intermediate-term outlook on the S&P 500.
S&P 500 in Bullish Formation and Could Top 3,000, Instinet’s Cappelleri Says – Bloomberg
On the latest edition of Bloomberg’s “Smart Charts” Frank Cappelleri, of Instinet gives his thoughts on the S&P 500, Treasury yields, and the Healthcare Providers ETF, $IHF. HF.
Top 10 Tweets
Breadth remains strong across cap tiers = short-term #bullish $SPX pic.twitter.com/6DBYaXQahJ
— David Keller, CMT (@DKellerCMT) June 19, 2019
Right on cue, the S&P 500 bottomed as the % of stocks >200-day MA in the SPX hit 50%.
As you can see, this has been support multiple times the past few years.
The only time it broke was in Q4 '18 and that was a major warning something was wrong. pic.twitter.com/Y5qoCpC5rA
— Ryan Detrick, CMT (@RyanDetrick) June 19, 2019
Dow Jones Industrial Average has made no progress over the last 350 trading days.
It is around the same price of 26,530. pic.twitter.com/SQkZHxan8x
— Tiho Brkan (@TihoBrkan) June 19, 2019
If the final bull-market end is deflationary in nature, the NYSE bond-like securities will be stronger for longer, negating some (all?) of the A/D Line’s predictive value. Its oddly robust behavior during the recent top-heavy market hints this deception may already be at work. pic.twitter.com/572ZTryUr7
— The Leuthold Group (@LeutholdGroup) June 19, 2019
semis havent been a leader in a while as $SMH vs $SPY works through a massive consolidation pic.twitter.com/NnKHi2bFuD
— BostonCharts (@bostonchaahhts) June 19, 2019
So the Fed says they won't be cutting rates, but the 2-year Treasury is another market refuting their resilience. Biggest single-day drop in yields since 9/6/16 and at the lowest levels since Nov 2017 pic.twitter.com/GQ47Hm3ru0
— John Kicklighter (@JohnKicklighter) June 19, 2019
10-year yields getting really close to 2% here pic.twitter.com/cS8PfnYv2k
— Joe Weisenthal (@TheStalwart) June 19, 2019
$GC_F monthly. Beautiful set up. If gold breaks out, we might see a new bull phase in precious metals. pic.twitter.com/9BfIQ7bM1M
— Yuriy Matso (@yuriymatso) June 18, 2019
$GE like the move today and lots of volume near the top of that raindrop. Let's see if it can push through the 10.50 area pic.twitter.com/Sh6iRzKhtH
— Gregory Krupinski (@G_krupins) June 19, 2019
The #bitcoin log chart. ?Looks super strong technically. Is there a technically bearish interpretation out there for this chart? Intermediate / long term (Note: I said "technical" not fundamental, not philosophical) If so, shoot it over. $BTC pic.twitter.com/9IVy9o34jX
— Tarek I. Saab (@FibLines) June 18, 2019