Daily Chart Report ? Thursday, February 27th, 2020
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Today’s Summary
Thursday, February 27th, 2020
Indices: US stocks had their worst day since the 2011 flash crash, with the Dow Jones Industrial Average shedding 1,191 points or 4.42%. The S&P 500 also dropped 4.42%, while the Nasdaq fell 4.61%. The Russell 2000 wasn’t as weak as the other major indices but still closed lower by a whopping 3.54%.
Sectors: All 11 sectors closed lower. Health Care led, but still fell 3.40%. Real Estate lagged, dropping 5.65%.
Commodities: Crude Oil futures fell 4.75% to $46.34 per barrel. Gold futures inched up 0.21% to $1,646 per ounce.
Currencies: The US Dollar Index fell 0.58%.
Interest Rates: The US 10-year Treasury yield fell to a record low of 1.274%.
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 Tiho Brkan (@TihoBrkan). It’s a daily candlestick chart of the S&P 500 ETF, $SPY, over the past year. The S&P 500 fell 4.42% today, marking its worst day since the 2011 flash crash when the index fell 6.66%. As of today, the index has officially entered correction territory, as it’s fallen over 10% from its high (-12.11% to be exact). It took just one week for $SPY to go from being overbought and trading at all-time highs, to being oversold and in correction territory. Just one week! Tiho adds that we’re approaching the 52-week moving average. However, the index went on to close below the 52-week moving average by the end of the day. The question on everyone’s mind right now is; will this correction turn into a bear market? Let us know what you think here!
Quote of the Day
“Everyone has a plan until they get punched in the mouth.”
– Mike Tyson (Boxer)
Top Links
Just Four S&P 500 Stocks Up This Week – Bespoke
In this note, Bespoke explains that the S&P 500 is on track to have one of the worst weeks in the history of US Equities. They add that only four stocks in the S&P 500 are positive this week, REGN, GILD, CLX, CME.
Wild Stock Swings Can’t Deter ‘Mom-and-Pop’ ETF Investors – Bloomberg
Dan Russo of Chaikin Analytics gives his technical take on this week’s price action in some of the most popular ETFs.
Nine Things that Happen to Investors When Volatility Increases – Eight Fat Swine
Behavioral finance expert, Phil Pearlman outlines nine things that tend to happen to investors during times of elevated volatility.
Podcast with Larry McDonald – Technical Analysis Radio
In this podcast, host JC Parets interviews NY Times best selling author, Larry McDonald. They discuss some of the developments in the bond market, and Larry tells some great stories of his days as a bond trader at Lehman Brothers.
Why It’s “An Orderly Sell-Off” – The Reformed Broker
Josh Brown of Ritholtz Wealth Management shares his thought on this week’s sell off and argues that this is an “orderly sell-off.”