Daily Chart Report ? Tuesday, September 29th, 2020
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Today’s Summary
Tuesday, September 29th, 2020
Indices: US Stocks closed lower in today's session with the Dow Jones Industrial Average falling 131 points or 0.48%. The S&P 500 and Nasdaq slipped 0.48% and 0.29%, respectively. The Russell moved lower by 0.37%.
Sectors: 10 of the 11 sectors closed lower. Communications was the only sector to close higher, inching up just 0.10%. Energy lagged, falling 2.75%.
Commodities: Crude Oil futures dropped 3.23% to $39.29 per barrel. Gold futures rose 1.10% to $1,903 per ounce.
Currencies: The US Dollar Index moved lower by 0.42%.
Interest Rates: The US 10-year Treasury yield inched lower to 0.650%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Steve Strazza (@sstrazza). It’s a ratio chart of the Nasdaq 100 vs. Long Term Treasury Bonds over the past few years ($QQQ/$TLT). When the ratio is rising, as it has been, it means the Nasdaq is outperforming Bonds. Steve points out that this is a logical place for Stocks to reassert their leadership relative to Bonds. In a comment to The Chart Report, Steve told us, “This ratio has already broken out of a multi-year base, and it’s currently retesting the breakout level around 1.60. As long as the ratio holds up above 1.60, you want to be overweight Stocks and underweight Bonds.”
Quote of the Day
“I tried to detect those stocks that resisted the market decline. I reasoned that if they could swim against the stream, they were the ones that would advance most rapidly when the current changed.”
– Nicolas Darvas
Top Links
This Technical-Analysis Pattern Suggests the S&P 500 Could Jump 30% From Current Levels, According to BofA - Business Insider
This article highlights Bank of America's technical outlook on the S&P 500.
Midweek Stock Market Recap and Technical Analysis - The Trade Risk
Evan Medeiros breaks down the recent price action in all of the major sectors and indices.
Biotech Sector ETF Reversal Higher Triggers Buy Signal - See it Market
Guy Cerundolo explains why he's bullish on Biotech at these levels.
Seasonal Weakness as Stocks Test Resistance - The Final Bar
In this episode of The Final Bar, Guest Jonathan Krinsky, of Baycrest Partners offers his thoughts on Growth vs. Value and Seasonality.
No, This Isn't a Repeat of the Dot-Com Bubble - Of Dollars and Data
Data Scientist, Nick Maggiulli contrasts the current market environment with the Dot-com bubble.