Daily Chart Report ? Thursday, June 4th, 2020
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Today’s Summary
Thursday, June 4th, 2020
Indices: US Stocks were mostly lower in today’s session. The Dow Jones Industrial Average was flat, changing just 12 points or 0.05%. The S&P 500 and Nasdaq fell 0.34% and 0.69%, respectively. The Russell 2000 was completely unchanged.
Sectors: Financials led, gaining 2.18%. Real Estate lagged, falling 1.87%.
Commodities: The July Crude Oil futures inched higher by 0.32% to $37.41 per barrel. Gold futures rose 1.33% to $1,727 per ounce.
Currencies: The US Dollar Index fell for the eighth day in a row, dropping 0.56%.
Interest Rates: The US 10-year Treasury yield rose to 0.831% – its highest level since the end of March.
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 Grayson Roze (@GraysonRoze). It’s a chart of the S&P 500 over the past three years, along with an inverted 5-day Put/Call Ratio in red. Many technicians are concerned that the market is getting frothy, as reflected by the extremely low Put/Call ratio. It’s 5-day moving average is currently at 0.49 – the lowest reading since the market peaked in mid-February. An extremely low reading from this short-term sentiment indicator tells us that market participants are abandoning their protective puts and buying more speculative calls, betting the market will continue higher. As Grayson points out, extreme turning points in the Put/Call ratio often occur just before turning points in the S&P 500. After a record-breaking 40% rally over the past 50-days, it wouldn’t be surprising to see stocks pullback and shake out some complacent bulls. As always, this is just one data point to consider within the context of other evidence. However, it’s certainly a potential risk to be aware of in the near-term.
Quote of the Day
– George Soros (Hedge Fund Manager)
Top Links
Nasdaq’s Historic Run – Bespoke
Bespoke points out that the slope of the Nasdaq’s 50-day moving average has never been so steep as a result of the sharpest 50-day rally on record.
The Market Saying Better Times Could be Ahead – Yahoo Finance
In this clip, Ryan Detrick of LPL Financial Research shares his outlook on Stocks.
Crude Oil Rallies 222% in 30-days, Peak Oil Time Again? – Kimble Charting Solutions
Chris Kimble shows that Crude Oil is running into an area of resistance after a triple-digit rally off the April lows.
BRIC by BRIC… The Building Blocks – Jotting on Charts
Grant Hawkridge shares his notes on several different global equity markets, specifically, Emerging Markets and the BRICs – Brazil, Russia, India, China.
Volatility Index – Did it Bottom? – StockCharts.com
Michele Schneider examines a potential reversal brewing in the Volatility Index ($VIX).