Daily Chart Report ? Wednesday, May 19th, 2021
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Today’s Summary
Wednesday, May 19th, 2021
Indices: US Stocks continued lower in today's session with the Dow Jones Industrial Average falling 165 points or 0.48%. The S&P 500 slipped 0.29%, while the Nasdaq closed flat (0.03%). The Russell 2000 underperformed, dropping 0.78%.
Sectors: 2 of the 11 sectors closed higher. Tech led, rising 0.35%. Energy lagged, falling 2.49%.
Commodities: Crude Oil futures dropped 3.27% to $63.36 per barrel. Gold futures inched higher by 0.11% to $1,870 per ounce.
Currencies: The US Dollar Index rose 0.46%.
Interest Rates: The 10-year US Treasury moved higher to 1.675%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day comes from lookintobitcoin.com. It's a chart of Bitcoin over the past decade along with a fascinating indicator called the Pi Cycle Top Indicator. This indicator has been very timely at identifying cycle tops over the past decade for Bitcoin. It recently flashed an ominous sell signal around $63,000 on April 13th...the day before the Coinbase IPO. The indicator is calculated using two moving averages - one simple 111-day moving average (orange) and a 2x multiple of the value of the 350-day moving average (green). For my math geeks out there reading this - the indicator is named after Pi because, 350/111 = 3.153, which is the closest you can get to Pi by dividing 350 by another whole number. Sell signals are triggered when the faster 111-day moving average crosses above the slower 2x(350-day moving average). Bitcoin is already down more than 30% from the most recent signal, so it may be difficult to act on it at this point. But, given its timely track record, the Pi Cycle Top Indicator appears to be a good tool for crypto analysts to keep in their toolbox. For more on this little-known indicator, click here.
Quote of the Day
"It is wise to remember that too much success in the stock market is in itself an excellent warning."
– Gerald Loeb
Top Links
Less Aggressive is Still Prudent - Potomac Fund Management
Dan Russo highlights some current market themes.
The 50-day and the early Gap Tell the Tale for QQQ - StockCharts
Art Hill examines the near-term outlook for the S&P 500 and the Nasdaq 100.
Commodities About to Blow Up or Blast Off Here? - Kimble Charting Solutions
Chris Kimble points out that Commodities are at a key inflection point.
U.S. Stock Market Update: Watch The 50-Day Moving Averages! - See It Market
Mish Schneider points out that all eyes are on the 50-day moving average right now.
Is a Head & Shoulders Top Forming - Almanac Trader
Jeff Hirsch examines a potential topping pattern forming on the Nasdaq.
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