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Today’s Summary
Thursday, September 10th, 2020
Indices: US Stocks closed lower in today’s session with the Dow Jones Industrial Average dropping 406 points or 1.45%. The S&P 500 and Nasdaq fell 1.76% and 1.99%, respectively. Small-Caps slightly outperformed, but still moved lower by 1.23%.
Sectors: All 11 sectors closed lower. Materials led, but still slipped 0.94%. Energy lagged, dropping 3.67%.
Commodities: Crude Oil futures fell 1.97% to 37.30 per barrel. Gold futures were unchanged at $1,955 per ounce.
Currencies: The US Dollar Index rose 0.12%.
Interest Rates: The US 10-year Treasury yield moved lower to 0.684%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$SPY closed below former breakout spot. Potential intermediate trend change. We'll see if we can dig in here tomorrow. pic.twitter.com/CJ73SCdpVQ
— Gregory Krupinski (@G_krupins) September 10, 2020
Today’s Chart of the Day was shared on Twitter by Gregory Krupinski (@G_krupins). It’s a daily bar chart of the S&P 500 ETF, $SPY, over the past year. The S&P 500 is at a precarious spot heading into the end of the week. Greg points out that $SPY closed below the February highs today. Bulls will need price to reclaim those former highs soon, or else we could have a failed breakout on our hands. As we know, failed breakouts often lead to sharp moves lower. The index has already violated its uptrend line from June but is still trading above its 50-day moving average (not shown). Tomorrow’s price action should give us a better indication of the direction of the intermediate trend. It will be a big victory for the bears if we close the week below the February highs. Stay tuned!
Quote of the Day
“It’s okay to be wrong; it’s unforgivable to stay wrong.”
– Martin Zweig
Top Links
Gap Between Market Cap and Equalweight Shrinks a Bit – Bespoke
Bespoke takes a look at the narrowing spread between the S&P 500 and the S&P 500 equal-weight.
Traders Rush Back Into Hedges – Dana Lyons
Dana Lyons points out that traders have rushed into inverse ETFs amid the recent volatility.
Are Junk Bonds Suggesting A Stock Market Top is Near? – Kimble Charting Solutions
Chris Kimble says he’s closely watching Junk Bonds here for evidence of risk appetite.
Why a Fall to Remember May Be Ahead – Bloomberg
In this short clip, Abigail Doolittle highlights some ominous action in the SKEW index.
As Investors Slap Down Lululemon, Another Athleisure Stocks is Flashing a Buy Signal – CNBC
Ari Wald of Oppenhiemer makes the bull case for shares of Nike, $NKE.
Top Tweets
This has been the worst five days for the S&P 500 where the index still closed above its 50-DMA since 1934.
— Bespoke (@bespokeinvest) September 10, 2020
relax, everything's fine as long as $SPX holds above the 50-day moving average pic.twitter.com/iCETbDUOXm
— StockCats (@StockCats) September 10, 2020
Bulls fighting to keep $QQQ above its 50 DMA. A close below would be the first since early April and call the rally into question with little support below until the 200 DMA $SPY $DIA $IWM pic.twitter.com/Aa1HoOaIxT
— Top Gun Financial (@TopGunFP) September 10, 2020
Let's take a look at the S&P 500 Advance-Decline Percent Line. This indicator made new highs recently and has held up well so far. I'd like it to stay above the high made in late February, and the 50 DMA; it makes for a healthier market. $SPXADP #SPX500 #StockMarketUpdate pic.twitter.com/i61zFTbwD3
— Mike Moses, CMT (@DominickMike) September 10, 2020
Cycle composite work peaked on September 8, suggesting a pullback that carries us into October right before the election. pic.twitter.com/w39kTZq0KL
— Mark Minervini (@markminervini) September 10, 2020
It's amazing what simply avoiding the worst areas can do for a portfolio. You don't even really have to pick a bunch of winners…just avoid the losers! $SPXE $SPX $XLE pic.twitter.com/FwpvTRgXry
— Ian McMillan, CMT (@the_chart_life) September 10, 2020
Clean energy destroying traditional energy last 3 months. $XOP $OIH $AMLP $ICLN pic.twitter.com/8ISkjnFnMp
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) September 10, 2020
$DXY US Dollar Index forms a base around support with bullish momentum divergence pic.twitter.com/cckRjB1S4n
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) September 10, 2020
Focus on outperformers, number one: $NKE
New 12-month relative high this week and a clear break above a six-month base last month. "Overbought means up alot." pic.twitter.com/4DSR78ocY4— David Keller, CMT (@DKellerCMT) September 10, 2020
VXN lower for a 4th day, even as Nasdaq 100 falls more than 2%
— Sarah Ponczek (@SarahPonczek) September 10, 2020
2020 so far
Fastest bear market
Highest % down days
Fastest bull market
Shortest bear market
Highest % up days
Best 5 month gain
Fastest correction4 months left. Good luck
— ukarlewitz (@ukarlewitz) September 9, 2020