Daily Chart Report ? Wednesday, February 26th, 2020
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Today’s Summary
Wednesday, February 26th, 2020
Indices: US stocks closed lower in today’s session with the Dow Jones Industrial Average dropping 124 points or 0.46%. The Nasdaq managed a small gain of 0.17%, while the S&P 500 closed lower by 0.38%. The Russell 2000 was the weakest of the major averages, falling 1.22%.
Sectors: 10 out of the 11 sectors closed lower. Technology was the only sector to close higher, gaining 0.46%. Energy lagged for the third day in a row, falling 3.02%.
Commodities: Crude Oil futures fell 2.89% to $48.65 per barrel. Gold futures rose 0.36% to $1,643 per ounce.
Currencies: The US Dollar Index moved higher by 0.15%.
Interest Rates: The US 10-year Treasury yield fell to 1.332%.
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 Peter Brandt (@PeterLBrandt). It’s a weekly candlestick chart of Crude Oil futures. As you can see, price has spent the past year in a well-defined range between roughly $50-$63 per barrel. It’s been a frustrating trade in recent weeks as it whipsawed above and below that key $50 support level several times. However this week, price seems to have decisively broken down from that level. Peter labels the trading range as a rectangle pattern. Price targets can be calculated from this classical chart pattern by taking the height, of the rectangle ($13) and subtracting it from the breakdown level ($50). This gives you a target of around $37 per barrel, which is over 20% below current prices. This is good news for consumers at the gas pump, but bad news for Crude Oil bulls.
Quote of the Day
“Our brains are wired for over-reaction and momentum.”
– Bruce Berkowitz (Hedge Fund Manager)
Top Links
What the S&P 500 E-Minis Are Signaling About the Broader Stock Market – Bloomberg
In this clip from Bloomberg, Katie Stockton of Fairlead Strategies and host, Abigail Doolittle discuss the technical outlook for the S&P 500 and Copper futures.
What Happens Next? – Of Dollars and Data
Nick Maggiulli puts this week’s sell off into perspective by breaking down how the S&P 500 has historically performed in the weeks/months following declines of similar magnitude.
As Stocks Sell Off Again, Chart Analyst Sees Buy Signal in Bond Market – CNBC
Ari Wald of Oppenheimer shares his thoughts on the recent price action in stocks and bonds.
The Anatomy of a Sell Off: The Three Phases – Behavioral Macro
Mark Dow lays out the roadmap of a typical stock market sell off.
Uptrends in Stocks are Falling Apart – All Star Charts
JC Parets highlights several charts that are breaking down and pointing to more pain ahead for stocks.