Daily Chart Report ? Tuesday, March 31st, 2020
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Today’s Summary
Tuesday, March 31st, 2020
Indices: US Stocks closed lower in today’s session with the Dow Jones Industrial Average falling 410 points or 1.84%. The S&P 500 and Nasdaq moved lower by 1.60% and 0.95%, respectively. The Russell 2000 was the strongest of the major indices but still slipped 0.45%.
Sectors: 10 out of the 11 sectors closed lower. Energy was the only sector to close higher, gaining 1.54%. Utilities lagged, dropping 4.04%.
Commodities: Crude Oil futures moved lower by 0.89% to $20.10 per barrel. Gold futures tumbled 3.18% to $1,591 per ounce.
Currencies: The US Dollar Index slipped 0.09%.
Interest Rates: The US 10-year Treasury yield rose to 0.698%.
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 David Keller (@DKellerCMT). It’s a chart of the S&P 500 over the past 20-years, highlighting the Zweig Breadth Thrust Indicator. Named after the legendary trader, Marty Zweig, this indicator essentially looks for instances where breadth goes from extremely negative to positive within a relatively short amount of time (two weeks or less). It’s calculated using a 10-day moving average of the number of advancing stocks on the NYSE, divided by the total number of stocks on the NYSE. A signal occurs when that 10-day exponential moving average goes from being below .40 to being above .61. As David points out, there have only been six of these signals in the past 20-years, but we could be headed for lucky number seven in the next few days. After each of those six signals, the market was higher 6-12 months later 100% of the time. To be fair, it was a bit early at calling the bottom in 2004, and 2015. However, it’s still a pretty robust signal. For more on this indicator, check out this video from David.
Quote of the Day
“If this is a bull market, it’s the only one in history that’s occurred with the majority of stocks in the US and around the world in downtrends.”
– Tom Bruni (Technical Analyst)
Top Links
Ask the Technicians: Is This a New Bull Market – The Big Picture
The rebound in stocks over the past week has many claiming a new bull market has begun. Here’s a must-read from Barry Ritholtz, in which he explains why it would be wrong to label this a new bull market.
Examining Bear Market Bounces – LPL Financial Research
In this note, the team at LPL Financial research takes a look at past bear market rallies.
Was That the Bottom? – Of Dollars and Data
Data scientist, Nick Maggiulli shares his thoughts on false rallies and the disconnect between the stock market and the economy.
Defensive Groups Lead the Bounce – All Star Charts
JC Parets points to all the signs that this rally is a classic dead cat bounce.
“Technical Analysis Using Multiple Timeframes” with Author Brian Shannon – SteadyTrade Podcast
Here’s a great podcast with Brian Shannon. He discusses his journey as a trader and what attracted him to Technical Analysis.
Top 10 Tweets
$SPX $SPY seasonality YTD compared to the last 30 years pic.twitter.com/dXaRiI5LaF
— ? I. Vodenitcharov CFA CMT (@iv_technicals) March 31, 2020
You’re all caught up now. Thanks for reading!