Daily Chart Report ? Friday, August 7th, 2020
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Today’s Summary
Friday, August 7th, 2020
Indices: US Stocks were mixed today's session. The Dow Jones Industrial Average rose 47 points or 0.17%. The S&P 500 closed higher for the sixth day in a row, inching up 0.06%. The Nasdaq underperformed, dropping 0.87%. The Russell 2000 outperformed, gaining 1.59%.
Sectors: Financials led, gaining 2.14%. Tech lagged, falling 1.49%.
Commodities: Crude Oil futures moved lower by 0.83% to $41.60 per barrel. Gold futures snapped a 15-day winning streak, falling 1.13% to $2,046 per ounce.
Currencies: The US Dollar Index rose 0.67%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.570%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Another look at breadth, using % stocks >50-d or 200-d. Poor participation + divergences hasn’t stopped a 4-mo rally back to ATHs. This is nothing new. Divergences can last days or a year. Markets can peak with or without them, on 'good breadth' or bad. In real time, worthless pic.twitter.com/QI1EKqqzPY
— ukarlewitz (@ukarlewitz) August 7, 2020
Today’s Chart of the Day was shared on Twitter by Urban Carmel (@ukarlewitz). It’s a chart of the S&P 500 over the past 12 years. The S&P 500 has been drifting higher while the percentage of stocks above their 50 and 200-day moving averages has fallen. These breadth divergences have caused some debate among analysts that the market is due for a decline. As you can see, most significant declines have been preceded by breadth divergences. But, not all breadth divergences have led to significant declines. As Urban reminds us, divergences can persist for months or even years while the market grinds higher. These are simply potential divergences until price confirms.
Quote of the Day
"If we couldn't laugh we would all go insane."
– Robert Frost
Top Links
High Low Friday - 8/7/20 - Dana Lyons
Dana Lyons highlights some noteworthy new highs and lows across the markets.
Stock Market Video Analysis 8/7/20 – 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.
Macro Themes and Trends (Steve Strazza) - Koyfin
Rob Koyfman and Steve Strazza discuss some of the most important macro trends to going on right now.
Four Stock Poised to Drive Heath Care Higher - TrendInvestorPro
Arthur Hill takes a look at the largest stocks in the Health Care sector.
What The FICC? - Breakout in US Treasury Bonds - All Star Charts
Tom Bruni gives an update on the fixed income space. In this week's episode, he focuses on the breakout in US Treasury Bonds.