Daily Chart Report ? Thursday, July 2nd, 2020
Sponsored By:
Today’s Summary
Thursday, July 2nd, 2020
Indices: US Stocks ended the week on a positive note with the Dow Jones Industrial Average advancing 92 points or 0.36%. The S&P 500 and Nasdaq rose 0.45% and 0.52%, respectively. The Russell 2000 rose 0.32%.
Sectors: Materials led, gaining 1.88%. Real Estate lagged, slipping 0.34%.
Commodities: Crude Oil futures moved higher by 2.08% to $40.65 per barrel. Gold futures rose 0.57% to $1,790.
Currencies: The US Dollar Index inched higher by just 0.07%.
Interest Rates: The US 10-year Treasury inched lower to 0.675%.
**Reminder: the US Stock Market and Bond Market will both be closed tomorrow, July 3rd, in observance of Independence Day.**
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 Willie Delwiche (@WillieDelwiche). The Nasdaq closed at an all-time high for the fourth of July! As we know, new highs are just about the most bullish thing that can happen. However, Willie points out that market internals have been deteriorating over the past month, while price has been printing new highs. Momentum indicators, like the MACD (above), and RSI (not shown), have been negatively diverging from price. Breadth indicators like the % of stocks above their 50, and 200-day moving averages have also been weakening. Bulls want to see these breadth and momentum indicators hitting new highs along with price, rather than diverging like they are now. It’s hard to be aggressively bearish with price hitting new highs, but it’s important to be aware that there are signs of weakness under the surface.
Quote of the Day
“There, I guess King George will be able to read that without his spectacles!”
– John Hancock
Top Links
What Weak Breadth? - All Star Charts
Steve Strazza offers a different perspective on market breadth. He argues breadth is improving, rather than deteriorating like many suggest.
Nasdaq 100 Relative Strength Testing 2000 Highs - Kimble Charting Solutions
Chris Kimble takes a look at a long-term ratio chart of the Nasdaq 100 vs. S&P 500.
Is the Growth Theme Broadening? - Chaikin Analytics
In this video, Dan Russo updates his thoughts on the current market environment.
China's Shanghai Composite Approaching 52-Week Highs - Bespoke
Bespoke discusses the breakout in Chinese equities.
Stock Market Video Analysis for Week Ending 7/2/20 - AlphaTrends.Net
Here's Brian Shannon's weekly analysis video, in which he breaks down this week's price action, and highlights some key levels of interest to be aware of.