Daily Chart Report π Tuesday, December 12, 2023
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Todayβs Summary
Tuesday, December 12, 2023
Indices: Nasdaq 100 +0.82% | Dow +0.48% | S&P 500 +0.46% | Russell 2000 -0.13%
Sectors: 8 of the 11 sectors closed higher. Financials led, gaining +0.72%. Energy lagged, falling -1.37%.
Commodities: Crude Oil futures dropped -3.80% to a five-month low of $68.61 per barrel. Gold futures were flat at $1,993 per oz.
Currencies: The US Dollar Index fell -0.26% to $103.82.
Crypto: Bitcoin rose +0.52% to $41,458. Ethereum fell -1.04% to $2,201.
Volatility: The Volatility Index dropped -4.43% to a four-year low of 12.08.
Interest Rates: The US 10-year Treasury yield fell to 4.203%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Todayβs Chart of the Day was shared by Caleb Franzen (@CalebFranzen). The Volatility Index ($VIX) fell to a 4-year low of 12.08 today. Caleb jokes that weβre probably not in a recession if the VIX is at multi-year lows. This further proves that a new bull market is underway, as volatility tends to contract once an uptrend is established. Some interpret this as a lack of fear among market participants. However, despite being called the βfear gauge,β the VIX isnβt necessarily a sentiment indicator. Itβs designed to measure the marketβs expectation of future volatility. By definition, the current reading of 12.08 means that the market expects a daily move of 0.75% in the S&P 500.
Quote of the Day
βShort-term volatility is greatest at turning points and diminishes as a trend becomes established.β
β George Soros
Top Links
Bull Market Behavior - JottingOnCharts
Grant Hawkridge highlights some of the positive developments that have taken place in recent months.
S&P 500, CPI, FOMC & December - CappThesis
Frank Cappelleri breaks down recent price action in the S&P 500 and what the final two weeks of the year could look like.
Nothing to Fear but Fear Itself - Grindstone Intelligence
Austin Harrison examines several key ratio charts and what they're telling us about risk appetite.
Which Companies Make Up the "Magnificent Seven" Stocks - Visual Capitalist
Visual Capitalist looks into the Magnificent Seven.