Daily Chart Report ? Tuesday, October 26th, 2021
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Today’s Summary
Tuesday, October 26th, 2021
Indices: Dow +0.04% | S&P 500 +0.18% | Nasdaq +0.06% | Russell 2000 -0.72%
Sectors: 9 of the 11 sectors closed higher. Energy led, gaining 0.58%. Communications lagged, falling 0.89%.
Commodities: Crude Oil futures rose 1.06% to a seven-year high of $84.65 per barrel. Gold futures fell 0.74% to $1,793 per ounce.
Currencies: The US Dollar Index gained 0.15%.
Interest Rates: The US 10-year Treasury yield moved lower to 1.610%.
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 in a note by Jason Goepfert of SentimenTrader (@SentimenTrader). It's a chart of the S&P 500 over the past six months, and the A/D Line in blue. As you might know, the A/D Line is a popular breadth indicator that often leads the market higher or lower. It recently broke out to an all-time high for the first time in over a month, thereby confirming the recent strength in the S&P 500. In the note, Jason points out that the odds of a 10% correction plummet when the A/D Line breaks out to an all-time high like this. He explained; "Since 1928, the S&P 500 was three times more likely to suffer a 10% decline at some point within the next three months if the S&P's Advance/Decline Line was not at a multi-year high. When it did break out to a new high, there was only a 4.6% probability of a 10% or greater decline within the next few months." For more on this, check out the full note here.
Quote of the Day
“If you can learn to create a state of mind that is not affected by the market’s behavior, the struggle will cease to exist.”
- Mark Douglas
Top Links
Year's Best Three Month Stretch About to Start - Almanac Trader
Seasonality expert, Jeff Hirsch points out that November-January has historically been the best three-month stretch for stocks.
Short-Term Breadth Takes Off - Bespoke
Bespoke points out that short-term breadth is overbought and may need to cool off in the near-term.
Setting the Stage for a Year-End Melt-Up - Potomac Fund Management
Dan Russo shares his weekly sector analysis.
Natural Gas Breakout Breakout Suggesting Skyrocketing Heating Bills??? - Kimble Charting Solutions
Chris Kimble breaks down a long-term chart of Nat Gas.
The Next Big Move - StockCharts
Greg Schnell takes a look at Crude Oil, Corn, and Gold.
Top Tweets
You’re all caught up now. Thanks for reading!