Daily Chart Report ? Wednesday, March 11th, 2020
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Today’s Summary
Wednesday, March 11th, 2020
Indices: It was another ugly day on Wall Street with the Dow Jones Industrial Average tumbling 1,465 points or 5.86%. The index has now officially entered bear market territory, as its fallen over 20% from its record high. The S&P 500 and Nasdaq dropped 4.89% and 4.70%, respectively. The Russell was the weakest of the major indices, plummeting 6.41%.
Sectors: All 11 sectors closed lower by more than 3.50%. Health Care led, but still closed lower by 3.82%. Industrials lagged, dropping 5.87%.
Commodities: Crude Oil futures tumbled 4.96% to $33.12 per barrel. Gold futures fell 0.87% to $1,635 per ounce.
Currencies: The US Dollar Index rose 0.13%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.82%.
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 in a blog post titled Bear Market Rallies by Michael Batnick of Ritholtz Wealth Management. The chart shows the performance of the S&P 500 (in red) during the 2000-2002 bear market. On top, in black, are the bounces from the lows along the way down. The S&P 500 fell over 40% during this period! This chart serves as a great reminder that some of the sharpest rallies occur within bear markets and downtrends. Notice that the index rallied about 20% on three separate occasions during these two-years. Michael explains that bear markets often present great opportunities for traders. However, for long-term investors, he emphasizes that bear market rallies can be deceptive and mess your emotions. Check out the full blog post here.
Quote of the Day
“For those properly prepared, the bear market is not only a calamity but an opportunity.”
– Sir John Templeton (Investor)
Top Links
One of the Most Unique Moments in Market History – SentimenTrader
Jason Goepfert discusses some of the unprecedented price action we’re seeing across the markets right now.
Two Must-See Charts of the Nasdaq 100 and Crude Oil Futures – Bloomberg
In this clip from Bloomberg, Carolyn Boroden joins host Abigail Doolittle to outline some key levels to keep an eye on in the Nasdaq 100 and Crude Oil futures.
Intermarket Analysis: U.S. Equities Correction Getting Nasty – See It Market
Aaron Jackson takes a look at some important ratio charts that illustrate the risk-off environment that we’re currently in.
Here’s the Most Important Chart I’m Watching – StockCharts
Aleksandar Bozic suggests using the 40-month moving average to gauge the long-term trend on the S&P 500 ETF, $SPY.
Discretionary/Staples Indicator Looking Similar To 2007 Highs! – Kimble Charting Solutions
Chris Kimble examines a ratio chart of Consumer Discretionary vs. Consumer Staples ($XLY/$XLP). He warns that further weakness from this important risk-appetite indicator would be bearish for the broader market.