Daily Chart Report ? Wednesday, June 17th, 2020
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Today’s Summary
Wednesday, June 17th, 2020
Indices: US Stocks closed mostly lower in today’s session, with the Dow Jones Industrial Average falling 170 points or 0.65%. The S&P 500 snapped a three-day winning streak, slipping 0.36%. The Nasdaq managed to close slightly positive, rising 0.15%. Small-Caps underperformed, with the Russell 2000 falling 1.77%.
Sectors: Communications was the only sector to close higher, inching up 0.13%. Energy lagged significantly, dropping 3.41%.
Commodities: Crude Oil futures moved lower by 1.77% to $37.70 per barrel. Gold futures were little changed, slipping just 0.06% to $1,735 per ounce.
Currencies: The US Dollar Index was more or less flat, changing just 0.03%.
Interest Rates: The US 10-year Treasury yield moved lower to 0.741%.
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 Ryan Detrick (@RyanDetrick). The chart shows the amount of money market mutual fund assets over the past 15 years, along with the three-month rate of change in yellow. Ryan points out that there has been a record spike in the amount of cash on the sidelines over the past three months. There is nearly $5 trillion in money markets, which is nearly double what it was five years ago. The recent surge in retail trading activity and the rise of newly minted day-trading gurus has many concerned that stocks are entering another dot-com type of bubble. But what if the real bubble is in the amount of cash on the sidelines? Sure, a lot of this is a result of massive fiscal stimulus and future uncertainty. But what if the world doesn’t end, and the markets continue higher? In such a case, it wouldn’t be surprising to see investors put some of this cash to work in the markets. Will this be the dry powder needed to fuel another leg higher or a sign of risk aversion?
Quote of the Day
“Charts don’t give answers, they raise questions. Inferences are drawn when enough questions point in the same direction.”
– Mark Ungewitter (Technical Analyst)
Top Links
Are Investors Rational? – Compound
Charlie Bilello dunks on the Efficient Market Hypothesis by reminding us that market participants are not rational.
Dow Jones Is Having A “Stare Down” With Important Resistance! – Kimble Charting Solutions
Chris Kimble points out that the Dow Jones Industrial Average is testing resistance from the 261.8% Fibonacci extension of the 2007-2009 decline.
Stock Market Swing Trade Ideas – The Trade Risk
In this video, Evan Medeiros shares some actionable chart setups from the IBD 50 list including, $TW, $NARI, $CATS, and $BL.
Three Stocks That Tell You Everything – StockCharts.com
David Keller takes a look at three individual stocks ($SBUX, $AMAT, $MS) that represent the action in the broader market.
Stock Market Video Analysis – AlphaTrends.Net
Brian Shanon gives a brief mid-week price action recap and lays out some levels of interest to focus on in the remainder of the week.