Daily Chart Report 📈 Thursday, August 15, 2024

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Today’s Summary
Thursday, August 14, 2024

Indices: Nasdaq +2.46% | Russell 2000+2.45%| S&P 500 +1.61% | Dow +1.39%

Sectors: 9 of the 11 sectors closed higher. Consumer Discretionary led, gaining +3.19%. Real Estate lagged, falling -0.29%.

Commodities: Crude Oil futures rose +1.53% to $78.16 per barrel. Gold futures gained +0.51% to $2,492 per oz.

Currencies: The US Dollar Index rose +0.46% to $103.04.

Crypto: Bitcoin fell -1.94% to $55,557. Ethereum fell -3.43% to $2,571.

Volatility: The Volatility Index dropped -6.05% to 15.22.

Interest Rates: The US 10-year Treasury yield rose to 3.915%.

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 Volatility Index ($VIX) closed at 15.22 today after spiking to its third-highest level in history last week. It closed at 38.57 last Monday, which was already significantly off its intraday high of 65.78. It’s down -60.5% from Monday’s close, falling in seven of the past eight sessions.

• Charlie points out that this has been the biggest eight-day volatility crash on record. The S&P 500 is up +6.9% over the same period, marking its best eight-day rally since launching off the bear market low in November 2022.

• Looking at the other 19 significant $VIX crashes in history, Charlie points out that the S&P 500 has typically had above-average returns across all time frames measured (1mo, 3mo, 6mo, 1yr, 2yr, 3yr, 4yr, 5yr).

Takeaway: The Volatility Index ($VIX) has fallen –60.5% over the past eight days, marking the largest volatility crash on record. When the $ VIX crashes at this rate, the S&P 500 has historically performed better than usual.

“Short term volatility is greatest at turning points and diminishes as a trend becomes established.”

- George Soros