Daily Chart Report ? Tuesday, April 20th, 2021
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Today’s Summary
Tuesday, April 20th, 2021
Indices: US stocks continued lower in today's session with the Dow Jones Industrial Average falling 256 points or 0.75%. The S&P 500 and Nasdaq slipped 0.68% and 0.92%, respectively. The Russell 2000 underperformed, dropping 1.96%.
Sectors: 4 of the 11 sectors closed higher. Utilities led, gaining 1.27%. Energy lagged, falling 2.65%.
Commodities: Crude Oil futures fell 1.20% to $62.67 per barrel. Gold futures rose 0.44% to $1,778 per ounce.
Currencies: The US Dollar Index inched higher by 0.13%.
Interest Rates: The 10-year US Treasury fell to 1.557%.
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 by Alfonso Depablos (@AlfCharts). It's a daily candlestick chart of the Nasdaq 100 ETF, $QQQ, over the past five months. Alfonso points out that the Nasdaq could be forming a failed breakout. This bearish pattern occurs when price fails to hold above a prior breakout level. In this case, that breakout level is the February highs, around $336. There's an old adage about failed breakouts - "out of failed moves come fast moves in the opposite direction." Failed breakouts are often referred to as bull traps because the bulls who bought the breakout become trapped when price moves against them. To be fair, we closed slightly above $336 today, so it's still a bit early. But $QQQ is skating on thin ice here and buyers will need to show up soon. Stay tuned! If we're below $336, things could get messy!
Quote of the Day
“The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time, and still retain the ability to function.”
– F. Scott Fitzgerald
Top Links
Peak Optimism? - LPL Financial Research
The team at LPL Financial Research explains that excessive optimism is a near-term risk to stocks.
Chop Chop Chop... - All Star Charts
JC Parets shares some thoughts on the current market environment.
What is a 200-day Moving Average Again? - Bespoke
Bespoke points out that it's been nearly a year since the S&P 500 tested its 200-day moving average.
What’s Important in The Process of Trading Dogecoin and Other Crypto Assets - Yahoo Finance
Dan Russo offers his perspective on Cryptocurrencies.
Beware of These Long-Term Technical Patterns Repeating - Schaeffer's Investment Research
Todd Salamone weighs the bullish and bearish aspects of the current market.