Daily Chart Report ? Monday, July 20th, 2020
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Today’s Summary
Monday, July 20th, 2020
Indices: US stocks were mixed in today’s session. The Dow Jones Industrial Average was more or less flat, changing just 9 points or 0.03%. The S&P 500 rose 0.84%, while the Nasdaq jumped 2.51% to close at a record high. Small-Caps underperformed, with the Russell 2000 slipping 0.36%.
Sectors: Technology led, gaining 2.56%. Energy lagged, falling 1.66%.
Commodities: Crude Oil futures moved higher by 0.42% to $40.92 per barrel. Gold futures rose 0.41% to $1,817 per ounce.
Currencies: The US Dollar Index fell 0.21%.
Interest Rates: The US 10-year Treasury yield moved lower to 0.615%.
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 Michael Antonelli (@BullandBaird). It’s a daily bar chart of the S&P 500, year-to-date. Michael points out that the S&P 500 finally closed above the June highs today after trading sideways for over a month. Price is currently about 45% above the March low and less than 4% below the February high. At this point, the February 24th gap is just about the only thing standing in the way of current price and all-time highs. Price opened lower by over 2% to start the week that Monday, creating an area of potential supply that has yet to be tested. In a separate comment, Michael said, “There’s one gap left on the chart of the S&P 500 and we need 3,328 to fill it (about 2.25% higher).” If price can fill that gap, there will be very little overhead supply to prevent the S&P 500 from printing record highs. Mind the gap!
Quote of the Day
“In the stock market, as with horse racing, money makes the mare go. Monetary conditions exert an enormous influence on stock prices.”
– Marty Zweig
Top Links
Two Common Sentiment Indicators Are In Complete Conflict – SentimenTrader
Jason Goepfert points out that the Put/Call Ratio and the AAII Sentiment Survey are sending two completely different signals right now.
Froth Corrects Through Sector Rotation – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzzon, and Ivanhoff highlight the strongest stocks and trends across the markets right now.
Pain Trades – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some noteworthy technical developments to be aware of.
Weekly S&P 500 #ChartStorm – 20 July 2020 – TopDown Charts
The team at TopDown charts shares 10 insightful charts that speak to the current market environment.
Junk Bonds – A Test of Resistance – StockCharts.com
Michele Schneider explains what the price action in Junk Bonds, could signal for Stocks.