Daily Chart Report ? Monday, March 2nd, 2020
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Today’s Summary
Monday, March 2nd, 2020
Indices: US stocks rebounded from last week’s bloodbath in today’s session. The Dow Jones Industrial Average had its best day in over a decade, surging 1,294 points or 5.09%. The S&P 500 and Nasdaq rallied 4.60% and 4.49%, respectively. The Russell 2000 was the weakest of the major indices but still rose 2.85%.
Sectors: All 11 sectors closed higher by at least 3%. Utilities led, soaring 5.89%. Consumer Discretionary lagged but still closed higher by 3.44%.
Commodities: Crude Oil futures bounced 4.99% to $47.52 per barrel. Gold futures inched up 0.18% to $1,590 per ounce.
Currencies: The US Dollar Index dropped 0.63%.
Interest Rates: The US 10-year Treasury yield fell to a record low of 1.085%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
weekly RSI still confirming the structural bull trend. I really like visualizing the change in RSI regime when the structural trend shifts. If weekly RSI gets oversold that would be a big warning sign $SPX pic.twitter.com/qctWps3WO0
— BostonCharts (@bostonchaahhts) March 2, 2020
Today’s Chart of the Day was shared on Twitter by BostonCharts (@bostonchaahhts). It’s a long-term line chart of the S&P 500 index going back more than two decades. Last week was the worst week for the S&P 500 since 2008, with the index crashing over 11%. BostonCharts points out that the long-term structural uptrend remains intact, despite last week’s sharp sell-off. He adds that the weekly RSI (bottom pane) remains in a bullish regime, as it has yet to reach oversold conditions. We like this chart because it provides some much needed long-term perspective to last week’s epic decline. Also, it serves as a solid roadmap for investors looking to manage risk in this highly volatile market environment.
Quote of the Day
“Face reality as it is, not as it was or as you wish it to be.”
– Jack Welch (Former CEO of General Electric)
Top Links
Short-term Measures Approach “Washout” Territory – All Star Charts
Tom Bruni of All Star Charts lays out some of the signs pointing to a bounce for stocks in the near-term.
How to Handle a Market Correction – Momentum Monday
In their weekly video, Howard Lindzon and Ivanoff discuss the current market environment and highlight some stocks and industries that are showing relative strength.
Some Good News in The Face of the Coronavirus – LPL Financial Virus
In this note, the team at LPL Financial Research highlights a few positive tailwinds for stocks, including the fact that March and April have been the strongest two months for the S&P 500 on average, over the past 20 years.
Are the Wall Street Strategists Wrong? – Forbes
Technical analyst and Forbes columnist, Tom Aspray gives his take on last week’s price action and what to watch going forward.
WASHOUT? – Dana Lyons
Dana Lyons weighs the evidence of a potential “washout low” in the stock market.
Top 10 Tweets
You’re all caught up now. Thanks for reading!