Daily Chart Report ? Tuesday, September 8th, 2020

Today’s Summary
Tuesday, September 8th, 2020

Indices: US Stocks kicked off the week on a sour note with the Dow Jones Industrial Average dropping 632 points or 2.25%. The S&P 500 and Nasdaq closed lower by 2.78% and 4.11%, respectively. The Russell 2000 outperformed but still fell 2.00%.

Sectors: All 11 sectors closed lower. Utilities led, but still slipped 0.56%. Tech lagged, dropping 4.52%.

Commodities: Crude Oil futures tumbled 7.57% to $36.76 per barrel. Gold futures rose 0.46% to $1,943 per ounce.

Currencies: The US Dollar Index moved higher for the sixth straight day, gaining 0.50%.

Interest Rates: The US 10-year Treasury yield fell to 0.677%.

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 Aaron Jackson (@ATMcharts). It's a daily candlestick chart of the US Dollar ETF, $UUP, over the past year.  Aaron points out that after five months of trending lower, the US Dollar is setting up for a potential mean reversion move higher. A bullish momentum divergence formed throughout August when price made a series of lower lows while RSI made a series of higher lows. Price is attempting to confirm that divergence by closing above the August highs. We'll be watching this development closely over the next few weeks. A counter-trend rally in the US Dollar could act as a short-term headwind for several asset classes, including Large-cap multinational stocks, Commodities, and Emerging Markets. In a comment to The Chart Report, Aaron added, "Normally we’d want to use futures over ETFs when available, but sometimes the ETFs offer little hints like UUP’s March bottoming tail."

Quote of the Day