Daily Chart Report ? Monday, December 21st, 2020

Today’s Summary
Monday, December 21st, 2020

Indices: US Stocks were little changed after today's volatile session. The Dow Jones Industrial Average inched higher by just 37 points or 0.12%. The S&P 500 and Nasdaq slipped 0.10% and 0.39%, respectively. The Russell 2000 was flat, changing just 0.02%.

Sectors: 1 of the 11 sectors closed higher. Financials was the only sector to close higher, rising 0.81%. Energy lagged, dropping 3.22%.

Commodities: Crude Oil futures dropped 2.80% to $47.86 per barrel. Gold futures slipped 0.32% $1,883 per ounce.

Currencies: The US Dollar Index closed flat.

Interest Rates: The 10-year US Treasury yield inched lower to 0.936%

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 Ian McMillan (@the_chart_life). It's a ratio chart of the Nasdaq 100 futures vs. the Russell 2000 futures over the past year and a half. As we know, the Nasdaq is heavily weighted towards Large and Mega-cap stocks, while the Russell 2000 is the benchmark for Small-Cap stocks. Therefore, this ratio is effectively another way to visualize the rotation between Small and Large-Cap stocks. The Nasdaq has underperformed the Russell 2000 since September. However, Ian points out that we could see the Nasdaq reassert its leadership in the near-term. In a comment to The Chart Report, Ian said "The relationship between these two indices has reached the same low point we saw in June, and has approached this area with a bullish divergence in momentum. If we were going to see Large and Mega-Cap stocks, particularly the FAAMG names, outperform in Q1 2021, there’s a good shot that accumulation could begin this week. The great part about this is the risk/reward opportunity: If the Nasdaq doesn’t turn higher here, and Small Caps continue to lead, we will know very quickly."

Quote of the Day

"The more I read, the more I acquire, the more certain I am that I know nothing."

– Voltaire