Daily Chart Report ? Wednesday, April 22nd, 2020
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Today’s Summary
Wednesday, April 22nd, 2020
Indices: US Stocks closed higher with the Dow Jones Industrial Average advancing 557 points or 1.99%. The S&P 500 and Nasdaq closed higher by 2.29% and 2.81%, respectively. The Russell 2000 was the weakest of the major indices but still rose 1.39%.
Sectors: All 11 sectors closed higher. Technology led, gaining 3.85%. Consumer Staples lagged but still closed higher by 0.96%.
Commodities: The June Crude Oil futures contract surged 23% to $14.23 per barrel. Gold futures jumped 2.99% to $1,738 per ounce.
Currencies: The US Dollar Index rose 0.13%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.619%.
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 research note by Frank Cappelleri of Instinet (@FrankCappelleri). It’s a bar chart of the S&P 500 index over the past four months. In the note, Frank explains – “The SPX’s 31% rally hasn’t even tagged the 61.8% retracement level yet. From this perspective alone, any counter-trend move that peters out shy of that mark remains just that – a counter-trend move taking place within a bigger dominant (down) trend.” Technicians often use key Fibonacci retracements levels like 38.2% and 61.8% after a significant decline, in order to identify potential inflection points. According to Fibonacci analysis, this is simply a bear market rally until price proves otherwise by retracing over 61.8% of the February-March decline.
Quote of the Day
“Markets are strongest when they are broad and weakest when they narrow to a handful of blue-chip names”
– Bob Farrell (Technical Analyst)
Top Links
Gold Target $3,000 Per Oz, Due to This Pattern! – Kimble Charting Solutions
Chris Kimble explains why he thinks Gold could reach $3,000 per ounce if price continues to form a multi-year Cup & Handle pattern.
Beware of These Divergences – All Star Charts
Steve Strazza points out that market internals are deteriorating and that several bearish divergences are present.
Investors Beware As USO Contango Collapse Fuels PnL Pain – Bespoke
Retail traders looking to take advantage of the historic crash in Crude Oil have piled into the popular Oil ETF, $USO. In this note, Bespoke warns of some of the potential problems with using this ETF as a vehicle to buy Crude Oil.
The Economic Modern Family Tells a Story – StockCharts.com
Michele Schneider gives an update on a group of popular ETF’s she dubs the ‘Economic Modern Family’ – $IWM, $SMH, $IYT, $XRT, $KRE, and $IBB.
Stocks Rally as Oil Recovers After Hitting 21-Year Lows – Yahoo Finance
In this clip, Ari Wald of Oppenheimer weighs-in on the recent action in the energy space and the broader market.
Top 10 Tweets
$EEM & Copper have stuck together through all this craziness pic.twitter.com/pdwW9btRZW
— Lighthouse Capital (@LighthouseCap23) April 22, 2020
You’re all caught up now. Thanks for reading!