Daily Chart Report ๐ Monday, August 5, 2024
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Todayโs Summary
Monday, August 5, 2024
Indices: Dow -2.60% | Nasdaq -2.96% | S&P 500 -3.00% | Russell 2000 -3.33%
Sectors: All 11 sectors closed lower by more than -1.5%. Industrials led, but still fell -1.74%. Technology lagged, dropping -3.33%.
Commodities: Crude Oil futures fell -0.79% to a six-month low of $72.94 per barrel. Gold futures dropped -1.03% to $2,444 per oz.
Currencies: The US Dollar Index dropped -0.53% to a four-month low of $102.68.
Crypto: Bitcoin dropped -7.10% to $54,014. Ethereum slid -9.99% to $2,420
Volatility: The Volatility Index had its second-best day ever, surging +64.93% to 38.56 - its highest close since October 2020.
Interest Rates: The US 10-year Treasury yield was unchanged at 3.792%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
๐ Todayโs Chart of the Day was shared by Roy Mattox (@RoyLMattox).
- The Volatility Index ($VIX) had its second-biggest day in history today, surging +64.93%.
- Roy points out that it reached 65.73 todayโits third-highest level ever. However, it pulled back 27 points or -41% from its intraday high to close at 38.56. The $VIX has never closed further below its intraday high.
- The $VIX has only been higher than today during the Great Financial Crisis and the Pandemic. Despite todayโs historic move, the S&P 500 is less than -10% off a record high. This smells like capitulation, but as Roy notes, bottoms are usually more of a process than an event.
The Takeaway: The Volatility Index ($VIX) exploded to its third-highest reading in history today. However, it closed significantly off its intraday peak. The S&P 500 is probably nearing a short-term bottom, but turbulence is likely.
Quote of the Day
โI would like to see more volatility in the markets. Small shocks remind us that a bigger shock might occur. And, we protect ourselves to some extent.โ
โ Myron Scholes
Top Links
Chaos is Normal - Carson Research
Ryan Detrick puts the recent correction into perspective.
Defense Outperforms - Bespoke
Bespoke points out that Aerospace & Defense stocks have been relatively strong lately.
VIX Hits 50 โ Whereโs the Support? - All Star Charts
JC Parets offers his perspective on the current market environment.
A View from the Floor with Jay Woods, CMT - Freedom Capital Markets
Jay Woods highlights a few noteworthy developments to watch this week.
Fast Money - The Rotation Report
Aaron Jackson shares his thoughts on the recent volatility