Daily Chart Report ? Thursday, February 25th, 2021
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Today’s Summary
Thursday, February 25th, 2021
Indices: US Stocks closed lower in today's session with the Dow Jones Industrial Average falling 1.75%. The S&P 500 and Nasdaq dropped 2.45% and 3.52%, respectively. The Russell 2000 underperformed, tumbling 3.69%.
Sectors: All 11 sectors closed lower. Utilities led, but still fell 0.90%. Consumer Discretionary lagged, dropping 3.72%.
Commodities: Crude Oil futures rose 0.40% to a new 52-week high of $63.47 per barrel. Gold dropped 1.60% to $1,769 per ounce.
Currencies: The US Dollar Index was flat.
Interest Rates: The 10-year US Treasury yield jumped to 1.525%.
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 Alfonso Depablos (@AlfCharts). It’s a chart of the US 10-year Treasury yield ETF, $TNX, over the past decade. Interest rates continue to rip higher. On Monday, we discussed that the 10-year yield was testing an important long-term resistance level around 1.35%-1.45%. We broke above that level in a big way today with the 10-year yield currently at 1.52%. In a comment to The Chart Report, Alfonso said, “This was a solid resistance level, but the market has spoken, and yields are clearly resolving higher. We’re now firmly above 1.40% and momentum is in a bullish regime. I think we’ll likely see the 10-year yield continue higher towards that 2% level. We’re starting to see the impact of higher interest rates in the equity market, with Growth stocks getting hit and Value stocks finally catching a bid. If rates continue higher, it would provide a nice tailwind to Value relative to Growth.”
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Quote of the Day
"I believe in analysis and not forecasting."
– Nicolas Darvas
Top Links
The Stock Market Is Smarter Than All of Us - A Wealth of Common Sense
Here's a good read from Ben Carlson in which he explains how the stock market often prices things in before they're apparent to the public.
Sentiment Getting Frothy - LPL Financial Research
The team at LPL Financial Research weighs-in on sentiment.
Large Cap Tech Drifts Lower - StockCharts
Greg Schnell takes a look at the recent weakness in Large-Cap Tech stocks.
Ed Clissold Examines Growth Vs. Value Trends - TD Ameritrade Network
In this clip, Ed Clissold offers his thoughts on the recent rotation from Growth to Value.
Recent Typical March Trading: Strength Early and After Mid-March - Almanac Trader
Seasonality expert, Jeff Hirsch examines how stocks have historically performed in March.
Top Tweets
From a technical standpoint, it's worth noting that while the S&P500 index is marginally above its 50-day MA, the equal-weight S&P500 index looks more constructive, still holding above its 21-day EMA or a near-term technical inflection point $SPX pic.twitter.com/1YruaMcLEe
— Michael McKerr (@MikeMcKerr_TDA) February 25, 2021
