Daily Chart Report ? Wednesday, August 19th, 2020
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Today’s Summary
Wednesday, August 19th, 2020
Indices: US Stocks closed lower in today's session with the Dow Jones Industrial Average slipping 85 points or 0.31%. The S&P 500 and Nasdaq fell 0.44% and 0.57%, respectively. Small-Caps outperformed with the Russell 2000 inching higher by 0.15%.
Sectors: All 11 sectors closed lower. Financials led, slipping just 0.04%. Real Estate lagged, falling 2.05%.
Commodities: Crude Oil futures were flat, and continue to trade at $43.11 per barrel. Gold futures dropped 3.92% to $1,934 per ounce.
Currencies: The US Dollar Index rose 0.74%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.683%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
In fact, $SPY volume over the past 5 days has never been lower, even during holiday weeks. Volume always spikes into sell off lows; arguably, it starts to rise into highs, too (lower panel) pic.twitter.com/28l95L2WDf
— ukarlewitz (@ukarlewitz) August 19, 2020
Today’s Chart of the Day was shared on Twitter by Urban Carmel (@ukarlewitz). The market has been extremely quiet lately in terms of volume, despite the recent breakout to record highs. Urban points out that the 5-day rolling average of volume on $SPY has never been this low, even during holiday weeks. Some would argue that this is bearish because you want to see high volume confirming a breakout. We would argue that volume isn't very useful anymore in today's world of dark pools and high-frequency trading. Also, it's quite common to see low-volume in the late-summer months. Urban shows that low volume, on its own, isn't necessarily bearish. If anything, volume often rises along with price into market tops rather than falling like it is now. In a comment to The Chart Report, Urban said, "volume is highest during periods of stress: participants get bullish at different rates but panic all at once." The bottom line here? Low volume isn't a major risk at this point.
Quote of the Day
"Headlines, in a way, are what mislead you because bad news is a headline, and gradual improvement is not."
– Bill Gates
Top Links
5 Charts to See With Stocks At New Highs - LPL Financial Research
The team at LPL Financial Research shares five must-see charts that put this year's price action into perspective.
The S&P 500 Hits a New High But Few Joined the Party - Andrew Thrasher
Andrew Thrasher highlights some signs of weakness under the surface amid new highs in the S&P 500.
Piper Sandler: There's More Upside to Equities From Here - CNBC
In this clip, Craig Johnson of Piper Sandler discusses why he thinks stocks will head higher into the end of the year.
Inflationary Winds Blowing Across Assets - Fibonacci.com
Tarek Saab offers his technical perspective on Stocks, Metals, and other Commodities.
This Breakout Could Take Stocks Even Higher - Rieben Financial
Greg Rieben explains that FAANMG stocks could propel the broader market higher.