Daily Chart Report ? Friday, July 31st, 2020
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Today’s Summary
Friday, July 31st, 2020
Indices: US stocks ended the week/month on a positive note with the Dow Jones Industrial Average advancing 115 points or 0.44%. The S&P 500 rose 0.77%, while the Nasdaq outperformed, gaining 1.49%. Small-Caps underperformed with the Russell 2000 falling 0.98%.
Sectors: Tech led for the second day in a row, gaining 2.50%. Health Care lagged, slipping 0.57%.
Commodities: Crude Oil futures moved higher by 1.28% to $40.43 per barrel. Gold futures rose 1.38% to an all-time high of $1,994 per ounce.
Currencies: The US Dollar Index gained 0.53%.
Interest Rates: The US 10-year Treasury yield fell to 0.535%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Steve Strazza (@sstrazza). What a day! The Nasdaq 100 ($QQQ) gapped higher at the open by over 1.78% but quickly went negative, falling over 1.75% from the open. Price managed to clawback that entire loss in the final hours of the day, to close right where we opened. This created a funny-looking candle referred to as a Dragonfly Doji – a candle with a long lower wick, and a close that is nearly identical to the opening price. In a comment to The Chart Report, Steve Strazza told us, “Doji’s represent short-term indecision, but they need to be viewed in the context of the underlying trend. When they close at the upper end of a trading range like this, it’s hard to interpret it as anything but bullish in the near-term.” Essentially this candle reflects the aggressive buying that occurred in the final hours of the day. Seeing that kind of surge going into the end of the day/week/month like this is certainly not bearish.
Quote of the Day
“Win as if you were used to it, lose as if you enjoyed it for a change.”
– Ralph Waldo Emerson
Top Links
Do the Top 5 Stocks Pose a Risk to the Market? – LPL Financial Research
The team at LPL Financial Research examines whether or not we should be concerned about how large the top five stocks in the S&P 500 have become.
Canary On The Crude Oil Rig – All Star Charts
Tom Bruni of All Star Charts explains why he’s closely watching Copper and Crude Oil for clues on the broader market.
Stock Market Video Analysis July 31, 2020 – AlphaTrends.net
Here’s Brian Shanon’s weekly video recap, in which he lays out some levels of interest to watch on the major indices.
My Leap Forward in Technical Analysis – Forbes
Tom Aspray takes an in-depth look at the Moving Average Convergence/Divergence indicator, or MACD.
Stocks in China to Get Body-Slammed – StockCharts.com
In this video, respected analyst, Larry Williams discusses why he thinks Chinese Stocks are due for a significant decline.
Top Tweets
You’re all caught up now. Thanks for reading!