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Today’s Summary
Thursday, March 21st, 2019
Indices: US stocks closed higher today, with the Dow Jones Industrial Average rallying 217 points or 0.84%. The Nasdaq led the rest of the major indices for the second day in a row, finishing up 1.42%.
Sectors: Technology led, with a gain of 2.42%, while Financials lagged for the second day in a row, falling 0.33%.
Commodities: WTI Crude Oil futures fell 0.5% to settle just under the $60 level at$59.98 per barrel. Gold was slightly higher, by 0.15% to settle at $1,307 per ounce.
Currencies: The US Dollar Index fell 0.68%.
Interest Rates: The US 10-year Treasury yield hit a new intra-day 52-week low, but stabilized throughout the day to 2.537%.
Here are some of the best charts, articles, and ideas being shared on the web today!
Today’s chart of the day was shared on Twitter by technician, Walter Deemer(@WalterDeemer). It’s a daily chart of the Financial Sector ETF ($XLF) with its performance relative to the S&P 500 below it in green. You can see it’s nearing new lows on a relative basis. Financials have been the worst performing sector for the past two days as interest rates continue to fall. They represent the third largest sector of the S&P 500 and the largest sector of the Russell 2000. Continued weakness from this sector could be a problem for the overall market
Quote of The Day
“I’m not predicting. I’m observing.”
– George Soros (Hedge Fund Titan)
The Three Charts John Roque is Watching – The Chart Report
Growing Number of Potential “Oopsies” – Tom Bruni – All Star Charts
Here’s a good read from Tom Bruni, pointing out the growing number of potential “Failed Breakdowns” he’s seeing on the charts right now.
JP Morgan and Goldman Sachs – Drifting Down – Howard Lindzon
Howard Lindzon wrote this blog post today highlighting the underperformance of Bank stocks. He shares a chart of Goldman Sachs ($GS) to illustrate its relative weakness.
Chart Analysts Like Chances of for a Big Rally, After S&P 500 Forms Bullish Inverse Head & Shoulders Pattern – Frank Cappelleri – CNBC
The S&P 500 has formed an inverse head & shoulders pattern over the past three weeks. Frank Cappelleri of Instanet explains to CNBC why this is a bullish development for US stocks.
Two Sectors Telling Two Very Different Stories – Bespoke
Semi Conductors and Transports are two industry groups that market participants look at to gauge the underlying strength of the economy. Bespoke points out that the two groups are currently sending mixed signals.
Top 10 Tweets
There's an interesting tension for the S&P 500 $SPX building between today's top sector #tech $XLK and… pic.twitter.com/2TucyKfpoT
— Abigail Doolittle (@TheChartress) March 21, 2019
Is this where we want to put new money to work? No.
Is this where we want to take a little off the table? Yes.$XLK pic.twitter.com/vh3ASCF9mZ— David Zarling (@360research) March 21, 2019
Ratio of Tech stocks to the S&P 500 at its highest level since May 2001… pic.twitter.com/fjFTfdqUwm
— Charlie Bilello (@charliebilello) March 21, 2019
Part of the bear case has been the largest stocks are not participating to the upside, but our Top 10 S&P 500 Stocks Equally-Weighted Index is now above its January 2018 highs while the S&P is not.
Rotation continues to drive the market. pic.twitter.com/zmpsaeWy1Y
— Tom Bruni, CMT (@BruniCharting) March 21, 2019
This chart includes absolutely nothing that predicts where the $SOX is headed price wise.
But this chart will perfectly illustrate the collective actions of participants at ATH's.
How they behave at this level today reveals their expectations for the $SOX tomorrow. pic.twitter.com/K5niPHhBFW
— Steve Deppe, CMT (@SJD10304) March 21, 2019
For those who want to fret about something: pic.twitter.com/PJ8qjJs65Y
— Walter Deemer (@WalterDeemer) March 21, 2019
Some wittle piggies gonna get offwee huwrt… pic.twitter.com/be6u7r4GXy
— Cory Venable CMT (@CoryLVenable) March 21, 2019
One of the interesting developments yesterday after the #Fed was high yield broke out.
Looking at high yield relative to treasuries, to see high yield lead is a sign credit markets are comfortable and stocks tend to do well. pic.twitter.com/pNbpIQ02Li
— Ryan Detrick, CMT (@RyanDetrick) March 21, 2019
Instead of listening to all the #FED experts, just watch what market rates are doing. Market rates lead government controlled rates. Note loss of upside momentum in whole yield curve starting last May. Peak in 2 yr./5yr. $TNX early Nov. Slowdown, way too many exp. FED hikes here. pic.twitter.com/up6FEXvzJF
— Mark Arbeter, CMT (@MarkArbeter) March 21, 2019
I don't know how far these #interestrate moves will go in the short term. But $TNX had already broken 2 uptrend lines several weeks ago. Then it crashed through horizontal support in the past few days. I wouldn't be surprised to see 2% longer-term if #recession fears keep rising pic.twitter.com/0r3psZ2KRt
— Mike Larson (@RealMikeLarson) March 21, 2019