Daily Chart Report ? Monday, October 4th, 2021

Today’s Summary
Monday, October 4th, 2021

Indices: US Stocks kicked off the week on a sour note, with the Dow falling 324 points or 0.94%. The S&P 500 and Nasdaq dropped 1.30% and 2.14%, respectively. The Russell 2000 declined 1.08%.

Sectors: 3 of the 11 sectors closed higher. Energy led, gaining 1.63%. Tech lagged, dropping 2.32%.

Commodities: Crude Oil futures gained 2.29% to a seven-year high of $77.62 per barrel. Gold futures rose 0.52% to $1,768 per ounce.

Currencies: The US Dollar Index fell 0.29%.

Interest Rates: The 10-year US Treasury yield rose to 1.482%

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 Drew Wells (@DrewTheCharts). It’s a weekly candlestick chart of the Energy sector ETF, $XLE, over the past seven years. The top-weighted holdings in this ETF include $XOM, $CVX, $SLB, $COP, and $EOG. The Energy sector has been exhibiting some serious relative strength lately. It’s the best performing sector year-to-date by a wide margin, and it’s the only sector showing a positive return over the past month. Rising Crude Oil prices have undoubtedly been a tailwind for the sector, with Crude hitting a 7-year high today. However, Drew points out that $XLE still needs to clear a solid long-term resistance level around $55-$57. This level has been a major inflection point over the past decade. It acted as crucial support in 2011, 2016, 2018, and 2019, but it finally broke in 2020 and turned into resistance. A break out above $57 would be very positive for Energy bulls. But until then, keep an eye on how price behaves around this potential resistance level.

Quote of the Day

“After years of observing and studying market cycles, there is absolutely no doubt in my mind that sector analysis is just as important as overall market timing. In fact, in certain markets, it is even more important.”

– Stan Weinstein