Daily Chart Report ? Tuesday, October 6th, 2020
Sponsored By:
Today’s Summary
Tuesday, October 6th, 2020
Indices: US Stocks closed lower in today’s session with the Dow Jones Industrial Average falling 376 points or 1.34%. The S&P 500 and Nasdaq dropped 1.40% and 1.57%, respectively. Small-Caps led for the fourth straight day but still slipped 0.30%.
Sectors: 10 of the 11 sectors closed lower. Utilities was the only sector to close higher, gaining 0.85%. Communications lagged, falling 2.10%.
Commodities: Crude Oil futures moved higher by 3.70% to $40.67 per barrel. Gold futures dropped 1.92% to $1,882 per ounce.
Currencies: The US Dollar Index rose 0.43%.
Interest Rates: The US 10-year Treasury yield fell to 0.732%
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 Grant Hawkridge (@granthawkridge). It’s a daily candlestick chart of the S&P 500, year-to-date. Grant points out that the S&P 500 is stuck in a trading range between the February highs (around 3400) and the June highs (around 3220). Trendless price action like this can be frustrating for both the bulls and bears. This is an especially light week in terms of economic data, Fedspeak, and earnings. As a result, everyone is focused on the news flow. As we mentioned on Friday, Price is the only truth in markets. Everything else is just stories, opinions, or noise. It’s easy to get caught up in these headlines, but price is the only thing that will make or lose you money at the end of the day. So tune out the noise and focus on what matters. The levels are clearly defined. If we’re above the February highs, the risk is to the upside, and if we’re below the June highs, the risk is to the downside. But as long as we’re stuck between these two key levels, expect the chop to continue.
Quote of the Day
“Rock stars come and go. Musicians play until they die.”
– Eddie Van Halen
Top Links
This Technical Indicator Just Hit Record Highs, Suggesting More Upside Ahead for the S&P 500 – Business Insider
This article from Business Insider spotlights new highs in the Advance/Decline line.
Relative Strength Reversal? – Bespoke
Bespoke analyzes the relative strength trends of each sector.
Willie Delwiche Talks Technical Indicators on the S&P 500 to Monitor – TD Ameritrade
In this clip, Willie Delwiche offers his technical perspective on the S&P 500.
Are We Seeing Significant Rotation? Check Out These 3 Industry Groups – StockCharts
Tom Bowley takes a look at three industry groups that are attempting to break out.
Inflation Confirmation? – Marea Market Musings
Dan Russo shares his thoughts on the reflation trade.