Daily Chart Report ? Friday, October 30th, 2020
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Today’s Summary
Friday, October 30th, 2020
Indices: US Stocks ended the week on a sour note, with the Dow Jones Industrial Average falling 158 points or 0.59%. The S&P 500 and Nasdaq dropped 1.21% and 2.45%, respectively. The Russell 2000 closed lower by 1.48%.
Sectors: 9 of the 11 sectors closed lower. Energy led, rising 0.56%. Tech lagged, dropping 2.21%.
Commodities: Crude Oil futures fell 1.05% to a five-month low of $35.79 per barrel. Gold futures rose 0.64% to $1,880 per ounce.
Currencies: The US Dollar Index inched lower by just 0.05%.
Interest Rates: The 10-year US Treasury yield moved higher to 0.875%.
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 Matthew Timpane (@mtimpane). As Matthew points out, the S&P 500 dropped 5.64% this week, booking its worst week since March. We got a small bounce at the end of today’s session with the index closing 1% above its intraday low, but still down over 1% on the day. Bulls will be watching the 3200 like a hawk next week. This level has acted as a key inflection point several times this year. If price fails to hold above it, traders will be looking to the 200-day moving average as the next line of defense, which is about 4% lower from here. As we know, many are anticipating next week to be a volatile one. What can you do to prepare? Have a plan — 1.) Know your timeframe 2.) Outline the levels your willing to buy or sell at and adhere to them.
Quote of the Day
“There are known unknowns. That is to say, we know there are some things we do not know. But there are also unknown unknowns, the ones we don’t know we don’t know.”
– Donald Rumsfeld
Top Links
Are the S&P 500 Index and Crude Oil Peaking Together Again? – Kimble Charting Solutions
Chris Kimble takes a look at the relationship between the S&P 500 and Crude Oil futures.
Where Do We (Investors) Stand – David Cox
Portfolio Manager, David Cox highlights of few of the charts and indicators that he’s watching heading into next week.
Broad Selling Pressure, but Not Enough to Tip the Scales – StockCharts.com
Arthur Hill checks up on market breadth amid the recent pullback.
Technical Analysis Radio Interviews: Hedge Fund Manager, Mark Dow – Technical Analysis Radio
In this podcast, JC Parets and Mark Dow discuss behavioral finance and the current macro environment.
Energy is the Worst Sector, Ever – SentimenTrader
Jason Goepfert points out that the Energy sector has underperformed the broader market by a wider margin than any other sector has in the past ~100 years.
Top Tweets
a lot of similarities with the ’16 pre-election run-up with the market weak. in 2016, the market made a low on the Friday pre-election and bottomed on Monday. 2016 $SPX (left-side) vs. 2020 $SPX (right-side) – discussed in the webinar pic.twitter.com/0igZeYzmsy
— David Cox, CMT, CFA (@DavidCoxWG) October 30, 2020