Daily Chart Report ? Thursday, May 20th, 2021
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Today’s Summary
Thursday, May 20th, 2021
Indices: US Stocks closed higher across the board in today’s session, with the Dow advancing 188 points or 0.55%. The S&P 500 and Nasdaq gained 1.06% and 1.77%, respectively. The Russell 2000 rose 0.64%.
Sectors: 10 of the 11 sectors closed higher. Tech led, rising 1.91%. Energy lagged for the third straight day, inching lower by 0.15%.
Commodities: Crude Oil futures dropped 2.23% to $61.94 per barrel. Gold futures rose 0.63% to $1,882 per ounce.
Currencies: The US Dollar Index dropped 0.47%.
Interest Rates: The 10-year US Treasury fell to 1.628%.
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 Renaissance Macro Research (@RenMacLLC). It’s a point & figure chart of Bitcoin. The spectacular rise in Bitcoin over the past year has sucked in a new class of hodlers’ like a rip current in the ocean. But yesterday, a lot of those new market participants found out what risk was for the first time. We’ve been following this trend since last May, and there has been no reason to fight it up until recently when it began losing strength relative to things like Gold. Bitcoin lives and dies by momentum. Once that momentum is gone, the script flips from “Buy the Dips” to “Sell the Rips.” As of writing, Bitcoin has already rebounded more than 30% from yesterday’s low of $30k, back to $40k. Renaissance points out that the ongoing reflex rally could carry higher towards $50k. However, there is a significant amount of overhead supply just below $50k that will likely put pressure on it.
Quote of the Day
“A successful trader studies human nature and does the opposite of what the general public does.”
– W. D. Gann
Top Links
A Long Tail on Utilities Signals Power for Defense – StockCharts
Julius de Kempenaer points out that the Dow Jones Utilities Index is beginning to show strength vs. Transports and Industrials.
When it Comes to Breadth, Your Time Frame Matters – Potomac Fund Management
Dan Russo shares his notes on market breadth.
Gold is Starting to Outperform Gold: Technical Analyst – BNN Bloomberg
In this clip, Todd Sohn of Stratgas Research offers his perspective on Stocks, Crypto, and more.
Gold is Breaking Out? – Fibonacci.com
Tarek Saab takes a look at Gold, Silver, and Gold Miners.
Crypto Crashes. Now What? – All Star Charts
Louis Sykes assess the damage in the Crypto markets.
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