Daily Chart Report ? Tuesday, January 5th, 2021

Today’s Summary
Tuesday, January 5th, 2021

Indices: US Stocks closed higher in today's session with the Dow Jones Industrial Average gaining 168 points or 0.55%. The S&P 500 and Nasdaq rose 0.71% and 0.95%, respectively. Small-Caps outperformed, with the Russell 2000 gaining 1.71%.

Sectors: 8 of the 11 sectors closed higher. Energy led significantly, jumping 4.48%. Real Estate lagged, slipping just 0.11%.

Commodities: Crude Oil futures moved higher by 4.85% to a 10-month high of $49.93 per barrel. Gold futures rose 0.40% to $1,954 per ounce.

Currencies: The US Dollar Index fell 0.42% to a fresh multi-year low.

Interest Rates: The 10-year US Treasury yield moved higher to 0.960%.

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 Greg Krupinski (@G_krupins). It's a chart of the Russell 2000 ETF, $IWM, over the past two decades. $IWM is nearly 30% above its 200-day moving average, which is the most extended it's ever been. While this over-extended reading might seem bearish, Greg points out that price thrusts of this magnitude have historically been a long-term bullish signal. There have only been two prior instances where $IWM was more than 25% above its 200-day moving average - 2003 & 2009. Both of these thrusts occurred after a major low and marked the start of a new bull market. In a comment to The Chart Report, Greg said, "There are plenty of bearish data points out there, especially around current valuations compared to history. Focusing on these could make you quite bearish. But nothing is as important as price action. Not even close. This huge surge off the lows and extension from the "mean" suggest there continues to be a great demand to own Stocks or Small-Caps in this case."

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Quote of the Day

"Never mistake knowledge for wisdom. One helps you make a living; the other helps you make a life."

– Eleanor Roosevelt