Daily Chart Report ? Thursday, March 5th, 2020
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Today’s Summary
Thursday, March 5th, 2020
Indices: It was another bad day for US stocks, with the Dow Jones Industrial Average tumbling 970 points or 3.58%. The S&P 500 and Nasdaq dropped 3.39% and 3.10%, respectively. The Russell 2000 shed 3.42%.
Sectors: All 11 sectors closed lower by at least 1.50%. Utilities led, but still closed lower by 1.54%. Industrials lagged, dropping 4.89%.
Commodities: Crude Oil futures moved lower by 2.52% to $46.01 per barrel. Gold futures soared 2.15% to a multi-year closing high of $1,673 per ounce.
Currencies: The US Dollar Index dropped 0.76%.
Interest Rates: The US 10-year Treasury yield fell to 0.918%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Ian McMillan (@the_chart_life). It’s a daily candlestick chart of the S&P 500 index during the 2018-2019 “bottoming process.” After last week’s sell-off, the question many are asking is whether the S&P 500 will retest Friday’s low, or stage a sharp V-shaped recovery like it did in 2018-2019. In case you forgot, the S&P fell 19.78% in Q4 2018, just a few basis points short of bear market territory. Ian points out that the index saw a “gnarly undercut” on the Thursday after the Christmas eve low. Price broke below the lows of the prior three days, leading many to believe that the sell-off was not over and that the index was on its way to retest the lows. Instead, the market gapped higher on Friday and never looked back. While we can’t expect price action to play out exactly as it did in 2018-2019, it’s still worth considering this as a potential scenario going forward.
Quote of the Day
“Sometimes you will never know the value of a moment until it becomes a memory”
– Dr. Seuss (Author)
Top Links
The Dow Gained Nearly 1,200 Points on Wednesday. Why It Probably Doesn’t Matter – Barron’s
In this article from Barron’s, several respected technicians weigh-in on the current market environment.
What a Persistently Elevated VIX Means for the Market – Andrew Thrasher
Volatility expert, Andrew Thrasher breaks down past instances where the Volatility Index ($VIX) remained elevated after a sell-off.
10-Year Treasury Yield Drops Below 1% – LPL Financial Research
The team at LPL Financial Research discusses the epic decline in the 10-Year US Treasury yield.
Never Confuse the Bottom of the Page with Support – Sierra Alpha Research
David Keller explains why he thinks the path of least resistance is higher for US Treasury Bonds.
How Stocks Perform After the Fed Cuts Rates – Of Dollars And Data
Data scientist, Nick Maggiulli examines how stocks have historically performed following Fed rate cuts. The post is packed with fascinating insights and great visuals.