Daily Chart Report 📈 Friday, August 9, 2024

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Today’s Summary

Friday, August 9, 2024

Indices: Nasdaq +0.54% | S&P 500 +0.47%| Dow +0.13% | Russell 2000 -0.17%

Sectors: 10 of the 11 sectors closed higher. Communications led, gaining +0.85%. Materials lagged, inching lower by -0.08%.

Commodities: Crude Oil futures rose +0.85% to $76.84 per barrel. Gold futures gained +0.41% to $2,473 per oz.

Currencies: The US Dollar Index inched lower by -0.08%to $103.15.

Crypto: Bitcoin fell -1.36%to $60,860. Ethereum dropped -3.14% to $2,600.

Volatility: The Volatility Index dropped -14.38% to 20.36.

Interest Rates: The US 10-year Treasury yield fell to 3.942%.

Here are the best charts, articles, and ideas shared on the web today!

Chart of the Day

🏆 Today’s Chart of the Day was shared by Charlie Bilello (@charliebilello).

• The S&P 500 was unchanged this week (-0.04%) despite an ugly start. It opened lower by -3% on Monday, sending the Volatility Index ($VIX) to its third-highest reading of all time.

• Bulls have vanished recently. Charlie points out that The Investors Intelligence Survey saw the largest 2-week drop in Bullish sentiment since the 1987 crash. Bulls dropped from 64.2% to 46.9%.

• As a bull market matures, investors become overconfident and complacent. However, investors still clearly lack conviction. This is exactly why corrections are ‘healthy.’ They shake out the weak hands and reset sentiment to more sustainable levels.

The Takeaway: Bullish sentiment has plunged recently. At the end of a bull market, investors become complacent, but they’re still nervous these days. It only took a single-digit decline to scare them away.