Daily Chart Report ? Wednesday, March 25th, 2020
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Today’s Summary
Wednesday, March 25th, 2020
Indices: US Stocks closed higher with the Dow Jones Industrial Average gaining 496 points or 2.39%. The S&P 500 rose 1.15%, while the Nasdaq slipped 0.45%. The Russell 2000 closed higher by 1.26%.
Sectors: Industrials led, gaining 5.26%. Communications lagged, falling 1.54%.
Commodities: Crude Oil futures were more or less unchanged and continue to trade at $24.31 per barrel. Gold futures dropped 1.56% to $1,643 per ounce.
Currencies: The US Dollar Index fell 0.82%.
Interest Rates: The US 10-year Treasury yield rose to 0.869%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Dan Nathan (@RiskReversal). It’s a chart of Amazon ($AMZN) over the past five years. Amazon has held up relatively well throughout the recent decline. Both Amazon and the S&P 500 last closed at an all-time high on February 19th. As of today’s close, Amazon has fallen from those highs by about 13% while the S&P 500 has fallen twice as much (26.89%). Dan points out the stock’s multi-year uptrend remains intact despite the historic sell-off in the broader market. Amazon is one of the most important stocks in the market. It is by far the largest component in the Consumer Discretionary sector, and it’s the third-largest component in the S&P 500. There aren’t a whole lot of positives to the market right now. However, As Dan points out, it’s undoubtedly “constructive” to see one of the biggest players in the market exhibit relative strength and maintain its long-term uptrend.
Quote of the Day
“Being able to respond to the changing future is a good thing; being surprised by the changing future is not.”
– Annie Duke (Professional Poker Player)
Top Links
What Do You Do Now? – The Irrelevant Investor
The S&P 500 is up more than 10% in just the past two days. However, it’s still more than 26% below its February highs. In this piece, Michael Batnick offers some advice to investors in volatile market environments.
Failure of Coutertrends Are Not a Sign of A Strengthening Market – Andrew Thrasher
Andrew Thrasher emphasizes that we need short-term rallies to hold their gains, rather than failing at resistance as they have been.
Historic Bounce in Gold at Key Fibonacci Level – Fibonacci.com
Tarek Saab of Fiboacci.com shares his thoughts on Gold and the Gold/Silver ratio.
Improving Breadth Suggests a Near-Term Bottom – All Star Charts
Steve Strazza argues that the recent improvement in breadth suggests the S&P 500 has found a near-term bottom.
Weighing the Downside vs. Upside Risks in the Market – The Korelin Economics Report
In this podcast, Portfolio Manager, Dana Lyons discusses how he navigates volatile market environments, and he weighs the potential risk vs. reward of this market.
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