Daily Chart Report ? Monday, February 24th, 2020
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Today’s Summary
Monday, February 24th, 2020
Indices: US stocks suffered their worst day in over a year, with the Dow Jones Industrial Average falling 1,032 points or 3.56%. The S&P 500 and Nasdaq dropped 3.35% and 3.71%, respectively. The Russell 2000 outperformed the rest of the major indices but still closed down 3.01%.
Sectors: All 11 sectors closed lower by more than 1%. Utilities led, but still fell 1.17%. Energy lagged, falling 4.62%.
Commodities: Crude Oil futures dropped 4.13% to $51.26 per barrel. Gold futures rose 0.96% to $1,662 per ounce.
Currencies: The US Dollar Index was flat.
Interest Rates: The US 10-year Treasury yield moved lower to 1.367%.
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 on Twitter by Ryan Detrick (@RyanDetrick). The chart shows the frequency of 2% drops in each year since 1950. The S&P 500 fell over 2% today for the first time since late August. Today’s price action certainly felt jarring, given the lack of volatility over the past few months. However, Ryan explains that 2% drops are fairly normal, “the S&P 500 averages more than five 2% drops per year.” Last year was a stellar year for stocks with the S&P 500 gaining nearly 30%, and even then, the index experienced five 2% drops. If history is any guide, this probably won’t be the last 2% drop we see in 2020.
Quote of the Day
“Markets take the stairs up and the elevator down.”
– Wall Street Adage
Top Links
We're Due for a Correction, Says Ralph Acampora - Financial Sense Podcast
In this podcast, legendary market technician Ralph Acampora explains why he's bearish in the short-term but remains bullish longer-term.
Gold Will Climb to $1,750, Hedge Fund Telemetry's Thornton Predicts - Bloomberg
Tom Thornton of Hedge Fund Telemetry made an appearance on Bloomberg today to lay out a bullish options trade on Gold futures.
Some Distribution in the Market - Momentum Monday
In their weekly video, Howard Lindzon and Ivanhoff highlight some of the strongest stocks and trends.
Dividend and Treasury Yield Spreads at Multiyear Highs - Bespoke
Bespoke takes a look at the decline in US Treasury yields as the yield on the 30-year Treasury Bond slips to its lowest level ever.
Gold, Rates, and Uncertainty - Murphy Charts
Shane Murphy shares his thoughts on some of the most significant technical developments in the market right now.