Daily Chart Report ? Wednesday, December 16th, 2020

Today’s Summary
Wednesday, December 16th, 2020

Indices: US Stocks were mixed in today's session. The Dow Jones Industrial Average inched lower by just 45 points or 0.15%. The S&P 500 and Nasdaq rose 0.18% and 0.50%, respectively. Small-Caps underperformed with the Russell 2000 slipping 0.36%.

Sectors: 5 of the 11 sectors closed higher. Tech led, gaining 0.68%. Utilities lagged, falling 1.16%.

Commodities: Crude Oil futures moved higher by 0.42% to $47.82 per barrel. Gold futures rose 0.20% $1,859 per ounce.

Currencies: The US Dollar Index dropped 0.25% hitting a fresh 2-year low.

Interest Rates: The 10-year US Treasury yield moved higher to 0.921%.

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). Bitcoin was the talk of the town today, as it soared to an all-time high above $20,000. Why do we care about all-time highs? Because at all-time highs, there is virtually no overhead supply preventing price from moving significantly higher. When an asset is in unchartered territory like this, Fibonacci extensions are one of the only useful tools for ascertaining potential price targets. This is done by measuring a major decline and multiplying that figure by a key Fibonacci ratio (1.618, 2.618, 4.236, etc...). Of course, most charting platforms have this as a preset tool, so you don't have to crunch the numbers. Steve used three separate Fibonacci extensions, measured from the 2013-2015 decline, the 2017-2018 decline, and the 2019-2020 decline. All three of these Fibonacci extensions cluster around $30,000. In a comment to The Chart Report, Steve said, "As long as we're above the former highs, around $19,000, the next logical price target is around $30,000."

Quote of the Day

"Bitcoin is like anything else: it's worth what people are willing to pay for it."

– Stanley Druckenmiller