Daily Chart Report ? Thursday, July 16th, 2020
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Today’s Summary
Thursday, July 16th, 2020
Indices: US stocks closed lower in today’s session with the Dow Jones Industrial Average slipping 135 points or 0.50%. The S&P 500 and Nasdaq fell 0.34% and 0.73%, respectively, while the Russell 2000 dropped 0.72%.
Sectors: Utilities led, gaining 1.27%. Technology lagged, falling 1.24%.
Commodities: Crude Oil futures dropped 1.09% to $40.75 per barrel. Gold futures moved lower by 0.74% to $1,800 per ounce.
Currencies: The US Dollar Index rose 0.27%.
Interest Rates: The US 10-year Treasury yield moved lower to 0.618%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared in a research note by Frank Cappelleri, of Instinet (@FrankCappelleri). It’s a ratio chart of the S&P 500 vs. the Nasdaq 100 over the past 15 months. There’s been a shift in index leadership recently, with the S&P 500 outperforming the Nasdaq for five consecutive days now. The S&P 500 has gained 2.12% in that time, while the Nasdaq has slipped 0.94%. In the note, Frank explains, “The recent NDX underperformance vs. the SPX has become noticeable on the relative chart. While we’ve seen pockets of SPX strength vs. the NDX before, no effort has been strong enough to push momentum back to overbought levels in over a year. Will this time prove to be any different?” A more pronounced change in leadership wouldn’t necessarily be bearish. If anything, this type of rotation could be viewed as healthy and bullish for stocks in the long-run. In the words of The Godfather of Technical Analysis, Ralph Acampora – “Rotation is the lifeblood of Bull Markets.”
Quote of the Day
“Man blames fate for other accidents but feels personally responsible for a hole-in-one.”
– Martha Beckman
Top Links
Markets Could Rotate, Endure ‘Instability’: Analyst – Yahoo Finance
Thomson Reuters technical analyst, Terence Gabriel discusses the change in leadership that we’ve seen recently.
Big Test in Aussie/US Dollar – All Star Charts
Tom Bruni highlights a few technical developments that he’s watching in the fixed income space, including key tests in AUD/USD, EUR/USD, and The US Dollar Index ($DXY).
Volatility Not Buying Small-Cap Rally? – Dana Lyons
Dana Lyons points out that the Russell 2000 Volatility Index ($RVX) didn’t budge yesterday despite the +3% rally in Small-Caps.
Best July Likely Over – Almanac Trader
Seasonality expert, Jeff Hirsch takes a look at how stocks have historically performed in the second half of July.
Factor Analysis is Worth Your Time! – Jotting on Charts
Grant Hawkridge shares his notes on several popular Factor ETFs including $MTUM, $IWD, $SLY, and $IWF.
Top Tweets
You’re all caught up now. Thanks for reading!