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Today’s Summary
Monday, July 20th, 2020
Indices: US stocks were mixed in today’s session. The Dow Jones Industrial Average was more or less flat, changing just 9 points or 0.03%. The S&P 500 rose 0.84%, while the Nasdaq jumped 2.51% to close at a record high. Small-Caps underperformed, with the Russell 2000 slipping 0.36%.
Sectors: Technology led, gaining 2.56%. Energy lagged, falling 1.66%.
Commodities: Crude Oil futures moved higher by 0.42% to $40.92 per barrel. Gold futures rose 0.41% to $1,817 per ounce.
Currencies: The US Dollar Index fell 0.21%.
Interest Rates: The US 10-year Treasury yield moved lower to 0.615%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
That was our first close above the June 8 high that we have been struggling mightily with (3,232 area)$SPX pic.twitter.com/gCujeuIa8w
— Michael Antonelli (@BullandBaird) July 20, 2020
Today’s Chart of the Day was shared on Twitter by Michael Antonelli (@BullandBaird). It’s a daily bar chart of the S&P 500, year-to-date. Michael points out that the S&P 500 finally closed above the June highs today after trading sideways for over a month. Price is currently about 45% above the March low and less than 4% below the February high. At this point, the February 24th gap is just about the only thing standing in the way of current price and all-time highs. Price opened lower by over 2% to start the week that Monday, creating an area of potential supply that has yet to be tested. In a separate comment, Michael said, “There’s one gap left on the chart of the S&P 500 and we need 3,328 to fill it (about 2.25% higher).” If price can fill that gap, there will be very little overhead supply to prevent the S&P 500 from printing record highs. Mind the gap!
Quote of the Day
“In the stock market, as with horse racing, money makes the mare go. Monetary conditions exert an enormous influence on stock prices.”
– Marty Zweig
Top Links
Two Common Sentiment Indicators Are In Complete Conflict – SentimenTrader
Jason Goepfert points out that the Put/Call Ratio and the AAII Sentiment Survey are sending two completely different signals right now.
Froth Corrects Through Sector Rotation – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzzon, and Ivanhoff highlight the strongest stocks and trends across the markets right now.
Pain Trades – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some noteworthy technical developments to be aware of.
Weekly S&P 500 #ChartStorm – 20 July 2020 – TopDown Charts
The team at TopDown charts shares 10 insightful charts that speak to the current market environment.
Junk Bonds – A Test of Resistance – StockCharts.com
Michele Schneider explains what the price action in Junk Bonds, could signal for Stocks.
Top Tweets
Highest close for SPX since February … tough to be bearish on this chart pic.twitter.com/L1qBTQd0Z6
— Christopher Cain, CMT (@PythonTrader) July 20, 2020
Rotation? What rotation?
Nasdaq at a record, nearing 11,000 and up 25% in 2020$NDX nothing to see here… pic.twitter.com/S9HB6ioZHG
— Sarah Ponczek (@SarahPonczek) July 20, 2020
Busy chart but small caps are finding resistance at the 200-week & descending trendline this morning $RUT $IWM pic.twitter.com/cxluySZqYS
— Drew Wells, CMT, CIMA® (@DrewTheCharts) July 20, 2020
Frothy sentiment is notable, but don’t lose sight of the big picture. #GobsOfBreadth is not bearish. H/t @McClellanOsc pic.twitter.com/mzNQ1izWY1
— Mark Ungewitter (@mark_ungewitter) July 20, 2020
#Dollar — Dollar Index — in bearish cycle windows // two degrees of trend. pic.twitter.com/ozeMXJypIC
— Nautilus Research (@NautilusCap) July 20, 2020
$GDXJ Junior Gold Miner ETF now at 7-year highs, finally breaking out of long term resistance. #Gold miners leading the way across the board today. If price holds, should quickly run to 70. pic.twitter.com/NB83tafaqz
— Tarek I. Saab (@FibLines) July 20, 2020
$SI_F $SLV Big test for silver right here. Big bases can lead to big break outs. $GLD $SIL pic.twitter.com/z93nAyibpD
— Greg Rieben (@gregrieben) July 20, 2020
Copper displaying polarity $HG_F #copper $3ish zone IMHO is huge! pic.twitter.com/01UGuoc20h
— Grant Hawkridge (@granthawkridge) July 20, 2020
Tesla closed above $1600 for the first time ever.
$TSLA △ 9.47% pic.twitter.com/7oRlxl8W9P— Stocktwits (@Stocktwits) July 20, 2020
$PETS breaking down. Proof it's not 1999 all over again pic.twitter.com/9nBp6ConLm
— ATMvaxCharts (@ATMcharts) July 20, 2020
Just a quick thought…if everyone thinks this is like 1999, it probably isn't. If it is, your risk management process will get you out of the way.
— Dan Russo, CMT (@DanRusso_CMT) July 20, 2020
It’s been 1999 again ever year since 1999. It’s 87 every year too. Never 1995 or 2017. Those won’t drive clicks.
— J.C. Parets (@allstarcharts) July 20, 2020