Daily Chart Report ? Friday, March 20th, 2020
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Today’s Summary
Friday, March 20th, 2020
Indices: US Stocks closed lower in today's session, ending the worst week on Wall St. since 2008. The Dow Jones Industrial Average dropped 913 points or 4.55%. The S&P 500 and Nasdaq fell 4.34% and 3.79%, respectively. The Russell 2000 closed lower by 4.24%.
Sectors: 10 out of the 11 sectors closed lower. Energy was the only sector to close higher, rising 0.98%. Utilities lagged for the second day in a row, tumbling 7.93%.
Commodities: Crude Oil futures plunged 12.66% to $22.63 per barrel - the lowest level since 2002. Gold futures gained 1.91% to $1,501 per ounce.
Currencies: The US Dollar Index fell 0.79%.
Interest Rates: The US 10-year Treasury yield moved lower to 0.938%.
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 JC Parets (@allstarcharts). As folks search for a bottom in stocks, hopeful bulls have been salivating at the sight of the bullish momentum divergences in some of the major sectors and indices. A bullish momentum divergence occurs when prices in a downtrend make a lower-low, while RSI makes a higher low. When this happens, it indicates that sellers are losing momentum and that prices could mean-revert higher. JC emphasizes the importance of being patient and waiting for price to confirm these divergences by closing above the initial low. Until that happens, these are simply potential bullish momentum divergences. JC suggests that traders consider the possibility that price does NOT confirm these potential momentum divergences, which would be a sign that stocks could fall even further. To hear more of JC's thoughts on the market, check out the interview he gave to BNN Bloomberg today.
Quote of the Day
"Bear markets never end on good news."
– Larry Williams (Technical Analyst)
Top Links
NYSE Floor Talk with Jay Woods - NYSE
NYSE Executive Floor Governor, Jay Woods, weighs-in on some of the historic price action we saw this week and discusses next week's floor closing.
Two Ways to Fight FOMO - Sierra Alpha Research
David Keller offers some advice on how to avoid letting the "Fear of Missing Out" (FOMO) influence your trading and investment decisions.
How Markets Bottom - LPL Financial Research
The team at LPL Financial Research examines past market bottoms and points out that markets tend to retest or even slightly break through former lows before making any meaningful recovery.
Doc Copper, Crude Oil & Stocks Testing Must Hold Support - Kimble Charting Solutions
Here's a note from Chris Kimble, in which he points out that the S&P 500, Crude Oil, and Copper are all testing crucial support levels.
Weekend Stock Market Recap and Sector Analysis - The Trade Risk
In this video, Evan Medeiros recaps this week's price action in some of the major sectors and indices.