Daily Chart Report ? Wednesday, May 27th, 2020
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Today’s Summary
Wednesday, May 27th, 2020
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 553 points or 2.21%. The S&P 500 rose 1.48% and closed above its 200-day moving average for the first time in 57 trading days. The Nasdaq clawed back the day’s earlier losses to close up 0.77%. Small-Cap outperformed with the Russell 2000 jumping 3.11%.
Sectors: All 11 sectors closed higher. Financials led for the second day in a row, gaining 4.34%. Technology lagged but still rose 0.57%.
Commodities: The July Crude Oil futures contract fell 4.48% to $32.81 per barrel. Gold futures rose 0.30% to $1,711 per ounce.
Currencies: The US Dollar Index inched lower by 0.07%.
Interest Rates: The US 10-year Treasury yield slipped to 0.693%.
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 Ed Clissold (@edclissold) of Ned Davis Research. Bulls won a major victory today with the S&P 500 closing above its 200-day moving average for the first time in 57 trading days. In addition to this bullish milestone, Ed points out that over 90% of stocks within the index are above their 50-day moving average. The black arrows mark the 19 prior signals where this breadth indicator rose above 90% after dipping to at least 75%. A year later (253 trading days), the S&P 500 was higher 19 out of the 19 times, with a median gain of 16.28%. Even the short-term returns have been positive, with a median gain of 0.79% 10-days later. Ed also noted, “This is an intermediate-term breadth gauge, so it is going to be late. It has fired a median of 1.8 months after bear market lows. This one was 2.0 months.”
Quote of the Day
“It feels good to get your ideas out in the world, leave a little of your imprint around. I have never lost anything by giving ideas away. If people find it useful, it makes me feel good.”
– Gerald Appel (Creator of the MACD)
Top Links
The Losers – Bespoke
As we pointed out in today’s Chart of the Day, 90% of S&P 500 stocks are above their respective 50-day moving averages. In this note, Bespoke takes a look at the other 10% of S&P 500 stocks that remain below their 50-day moving average.
4-minute Mid-Week Update – AlphaTrends.net
In this quick video, Brian Shannon lays out some key levels of interest to focus on throughout the remainder of the week.
Typical June Trading: Early Gains Tend to Fade After Mid-Month – Almanac Trader
Seasonality expert, Jeff Hirsch discusses how stocks have historically performed in June.
How Much of the Bear Market’s Losses Have Been Recovered? – A Wealth of Common Sense
Ben Carlson compares how far the major indices have bounced from the March lows.
ATH…Almost…Kinda, Well, Not Really – Crossing Wall Street
Eddy Elfenbein shares this totally useless, but fun stat: The S&P 500 would be positive right now if you exclude March 16th when the index tumbled nearly 12% in a single day.
Top 10 Tweets
The S&P 500 $SPY generated almost no gains during the day session between 1993 and 2019.
All of the gains in price have been generated by buying and holding overnight ( for decades)
h/t @mikeharrisNY pic.twitter.com/qmg0EYiekU
— Dividend Growth Investor (@DividendGrowth) May 27, 2020