Daily Chart Report ? Monday, July 19th, 2021
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Today’s Summary
Monday, July 19th, 2021
Indices: US Stocks continued lower to start the week. The Dow dropped 726 points or 2.09%. The S&P 500 and Nasdaq fell 1.59% and 1.06%, respectively. The Russell 2000 closed lower by 1.50%.
Sectors: All 11 sectors closed lower. Consumer Staples led, but still fell 0.30%. Energy lagged again, dropping 3.53%.
Commodities: Crude Oil futures had their worst day in nearly a year, tumbling 7.28% to $66.35 per barrel. Gold futures fell 0.32% to $1,809 per ounce.
Currencies: The US Dollar Index rose 0.13%.
Interest Rates: The 10-year US Treasury yield continued lower to 1.192%.
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 Yuriy Matso (@yuriymatso). It’s a 4-hour candlestick chart of Russell 2000 futures over the past six months. All eyes are on the Small-Cap Russell 2000 right now as it tests a crucial support level. As we know, Small-Caps often lead the broader market higher or lower. The index peaked in March and has been rangebound (between 2,100 and 2,350) ever since. Yuriy points out that we’re currently testing the lower bounds of that range, around 2,100. This level has acted as support three times already this year. Will the fourth test be a success? A bounce here has the potential to stick save the broader market. However, a break below this well-defined level would hint at further market weakness. Either way, the Russell 2000 is about to give us some valuable information, so pay attention to how price behaves around that 2,100 level!
Quote of the Day
“The markets take the stairs up and the elevator down.”
–Wall Street Adage
Top Links
Small-Caps Enter Correction Territory – Bespoke
Bespoke points out that the Russell 2000 briefly entered correction territory in today’s session (-10%).
The Latest Stock Sell-Off is a ‘Healthy Pullback’ and Investors Should Refrain From Panicking, According to One Technical Analyst – Markets Insider
Katie Stockton offers her technical perspective on the recent weakness in stocks.
Rotation, Rotation, Rotation – Means to a Trend
Austin Harrison points out that defensive sectors, like Utilities and Consumer Staples, have perked up recently.
Summertime Sadness? – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some of the most significant technical developments across the markets.
The Peak of the Presidential Cycle – Crossing Wall Street
Eddy Elfenbein explains that we’re approaching a peak in the four-year Presidential Cycle.
Top Tweets
You’re all caught up now. Thanks for reading!