Daily Chart Report ? Wednesday, October 28th, 2020
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Today’s Summary
Wednesday, October 28th, 2020
Indices: US Stocks suffered their worst decline in over four months today, with the Dow Jones Industrial Average tumbling 943 points or 3.43%. The S&P 500 and Nasdaq dropped 3.53% and 3.73%. Small-Caps outperformed but still fell 2.97%.
Sectors: All 11 sectors closed lower by more than 2%. Real Estate led, but still fell 2.22%. Tech lagged, dropping 4.24%.
Commodities: Crude Oil futures slid 5.51% to $37.39 per barrel. Gold futures moved lower by 1.71% to $1,879 per ounce.
Currencies: The US Dollar Index rose 0.53%.
Interest Rates: The 10-year US Treasury yield was little changed at 0.773%.
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 by Brian Lund (@bclund). The S&P 500 suffered its worst day in more than four months today. Ironically, October 28th has historically been the strongest day of the year for the index on average over the past 70-years. Brian takes a look at some of the technical damage we saw in today’s session. He points out that we lost both the 50 and 100-day moving averages. This was the first close below the 100-day moving average since May 22nd. Price is already below downward sloping 8-day and 21-day moving averages, indicating we’re in an intermediate-term downtrend. Traders will be watching how price behaves around the September lows (around 3225) and the 200-day moving average (currently around 3130). In a separate comment, Brian added “Generally institutions only buy stocks above the 200-day moving average, so if that breaks it could get uglier.”
Quote of the Day
“There is a time to go long, a time to go short, and a time to go fishing.”
– Jesse Livermore
Top Links
Whatever the Outcome, Day Before Election Day Historically Bullish – Almanac Trader
Seasonality expert, Jeff Hirsch takes a look at how Stocks have historically performed around Election Day.
More Pain for European Stocks – Bespoke
Bespoke highlights the recent weakness in European Stocks.
Mid Week Thoughts – Chaikin Analytics
In this quick video, Dan Russo offers his technical perspective on this week’s bearish price action.
Can the Market Be Saved – StockCharts.com
Mish Schneider outlines some key levels she’s watching on the major indexes.
What Happens When Stocks Drop 3% on the Third Down Day – Pivot Analytics
Pivot Analytics examines what tends to happen to the S&P 500 in the days/weeks following a 3% decline on the third consecutive down day.
Top Tweets
And interestingly, the dollar continues to be a more reliable hedge against a risk-off market: pic.twitter.com/hFPzKUNFEx
— Lisa Abramowicz (@lisaabramowicz1) October 28, 2020