Daily Chart Report ? Thursday, September 3rd, 2020
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Today’s Summary
Thursday, September 3rd, 2020
Indices: US Stocks suffered their worst day since June in today's session, with the Dow Jones Industrial Average dropping 808 points or 2.78%. The S&P 500 and Nasdaq slid 3.51% and 4.96%, respectively. The Russell 2000 moved lower by 2.99%.
Sectors: All 11 sectors closed lower. Energy led, but still fell 0.74%. Tech lagged significantly, tumbling 5.70%.
Commodities: Crude Oil futures slipped 0.34% to $41.37 per barrel. Gold futures fell 0.57% to $1,938 per ounce.
Currencies: The US Dollar Index inched higher by 0.14%.
Interest Rates: The US 10-year Treasury yield fell for the fifth straight day to 0.640%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Mark Ungewitter (@mark_ungewitter). The chart shows the S&P 500 over the past three years, along with the Volatility Index ($VIX) at the bottom. The S&P 500 had its worst day in over two months today after having its best day in over a month just yesterday. Today's price action has caused some concern that the top is in. Mark points out that cyclical tops don't tend to occur when the VIX is this high. If anything, Stocks tend to bottom when the VIX is near current levels. This pullback may deepen into a correction as Stocks work through their short-term overbought conditions. But it would be pretty rare to see the S&P 500 put in a major cyclical top with the VIX this elevated.
Quote of the Day
"It is actually easy to make money in the markets. Try to keep it -- that is the challenge."
– Peter Brandt
Top Links
The Bear Case Starts With Small-Caps - All Star Charts
JC Parets explains why he's closely watching Small-Caps here.
Big August: Bullish or Bearish? - Almanac Trader
Seasonality expert, Jeff Hirsch takes a look at how the S&P 500 has historically performed in September after big gains in August.
All or Nothing Days Make a Comeback - Bespoke
Bespoke points out that the all-or-nothing days are back (days when the S&P 500's net daily advance/decline reading is greater than +/-400)
Seasonality Expects a Decline For SPY in September and an Underperformance for Technology - StockCharts.com
Julius de Kempenaer takes a look at sector seasonality in September.
The Corn Moon and a Time of Change - Frances Horodelski
Frances Horodelski shares her thoughts on the current market environment.