Daily Chart Report ? Thursday, May 9th, 2019
Sponsored By:
Today’s Summary
Thursday, May 9th, 2019
Indices: US stocks were lower with the Dow Jones Industrial Average falling 139 points or 0.54%. The S&P 500 fell 0.30% while the Nasdaq fell 0.41%.
Sectors: Real Estate led, gaining 0.34%. Materials lagged, falling 0.77%.
Commodities: WTI Crude Oil futures were lower by 0.87% to settle at $61.58 per barrel. Gold futures were higher by 0.28% and are trading around $1,285 per ounce.
Currencies: The US Dollar Index fell 0.21%.
Interest Rates: The US 10-year Treasury Yield fell to 2.453%.
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 on Twitter by Troy Bombardia (@bullmarketsco). It’s a daily candlestick chart of the S&P 500 showing a potential failed breakout. A failed breakout or bull trap is when price breaks above resistance but fails to stay above it, causing everyone who got long on the breakout to rush to the exit at the same time. This is where we get the saying: out of failed moves come fast moves in the opposite direction. At the end of Apil, the S&P broke above resistance but has failed to hold above it. This development seems to be a common concern among many chart-watchers right now. This formation isn’t unique to the S&P 500 as we’re seeing it in other major US indices as well. Will this failed breakout cause a violent move lower for stocks?
Quote of The Day
“If you torture the data long enough, it will confess to anything“
– Darrell Huff (Author, How to Lie with Statistics)
Here's a research note from Ryan Detrick and the LPL research team that puts the recent sell-off into perspective. They note that the largest drawdown we've had all year is 2.5% which makes this one of the least volatile starts to a year ever!BofA Charts Show Return to Record Highs, Despite Pullback Fears Gripping the Market - Stephen Suttmeier - CNBC
In this clip from CNBC, Stephen Suttmeier explains why he's bullish on US Equities despite the recent spike in volatility.Bitcoin Bursts Back Above 6,000 - Matt Weller - Forex.com
In this piece from Matt Weller of Forex.com, he discusses the fact that Bitcoin is breaking out while other risk-assets are selling off. He emphasizes the fact that Bitcoin is back above $6,000 for the first time since November and is now testing resistance.
A Semi-Serious Decline - Bespoke
Semiconductor stocks have taken a beating this week. In this short note from Bespoke, they point out that Semis fell below their 50-day moving-average and sliced through a key support level.
The Potential Impact of a Rising U.S. Dollar on U.S. Sectors - Dan Russo - Chaikin Analytics
Here's a note from Chaikin Analytics' Chief Market Strategist, Dan Russo. He explains how an appreciating US Dollar could affect certain areas of the US Equity market.
Top 10 Tweets