Tuesday, February 18th, 2020
Indices: US stocks closed lower in today’s session with the Dow Jones Industrial Average falling 166 points or 0.56%. The Nasdaq was the strongest of the major indices, closing flat (0.02%). The S&P 500 fell 0.29%, while the Russell 2000 moved lower by 0.24%.
Sectors: Utilities led, gaining 0.84%. Financials lagged, falling 0.87%.
Commodities: Crude Oil futures slipped 0.34% to $52.34 per barrel. Gold futures moved higher by 1.12% to $1,605 per ounce.
Currencies: The US Dollar Index gained 0.45%.
Interest Rates: The US 10-year Treasury yield moved lower to 1.559%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Watching closely this week to see if prices of the major indices close below their January highs and confirm the many bearish divergences we're seeing.
Although this would be a signal of near-term weakness, as long as the S&P is above 2,950 then structurally things are intact. pic.twitter.com/pFg1AiVU1I
— Tom Bruni, CMT (@BruniCharting) February 18, 2020
Today’s Chart of the Day was shared on Twitter by Tom Bruni (@BruniCharting). It’s a daily bar chart of the S&P 500 index with a 14-period RSI indicator below it. Tom highlights the bearish momentum divergence that has formed as price made a new high, while RSI failed to reach a new high. He emphasizes the importance of waiting for price to confirm this divergence by closing below the January highs. He adds, “although this would be a signal of near-term weakness, as long as S&P 500 is above 2,950, then structurally things are intact.” In other words, the index could fall as much as 12% from current levels while remaining in a primary uptrend. A correction of that magnitude would probably feel like the end of the world, given the relatively low volatility environment that market participants have enjoyed over the past few months. In reality, it wouldn’t cause much technical damage, and could actually be viewed as healthy for the market in the long term.
Quote of the Day
“If life ever ceased to be an educational experience, I probably wouldn’t get out of bed.”
– Paul Tudor Jones II (Hedge Fund Manager)
A Historically Overbought Market – Forbes
Technical analyst and Forbes contributor, Tom Aspray shares his thoughts on some of the noteworthy technical developments in the market right now.
A Little Froth is Fun – Momentum Monday
In their weekly video, Howard Lindzon and Ivanhoff run through dozens of charts to identify the strongest stocks and trends in the market right now.
Podcast with Jeff Hirsch, Author of the Stock Trader Almanac – Technical Analysis Radio
Here’s a good podcast with seasonality expert Jeff Hirsch, in which he discusses the value of exploiting seasonal patterns and cycles.
Tech Leader Facing Important Long-Term Breakout Test! –Kimble Charting Solutions
Chris Kimble examines a long-term chart of the Philadelphia Semiconductor Index, $SOXX. He points out that the index is testing a critical level, and explains what a breakout/breakdown in Semiconductor stocks would mean for the broader market.
How Well Have Stocks Done Under President Trump? – LPL Financial Research
In honor of Presidents’ Day, the team at LPL Financial Research takes a look at how stocks have performed under each president going back to 1897. They also emphasize the importance of separating your political views from your investment decisions.
Top 10 Tweets
— Andrew Thrasher, CMT (@AndrewThrasher) February 18, 2020
— BostonCharts (@bostonchaahhts) February 18, 2020
$SPY hit a new high, but a steady progression to risk aversion remains. $GLD, $XLRE and $XLU broke out in late December, $TLT broke out in mid January, risk ratios turned down in January and $IJR is lagging in February. Short video: https://t.co/XxXNllOwoy pic.twitter.com/tMYXUVNjRc
— Arthur Hill, CMT (@ArthurHill) February 18, 2020
— Lisa Abramowicz (@lisaabramowicz1) February 18, 2020
Gold > 1600 pic.twitter.com/m3Izo9XJMu
— melinda smit (@gotacutloose) February 18, 2020
Gold — Breaking Out of its 2020 BASE. Using the current price as its closing price gold is at its highest closing level since Mar 27, 2013. pic.twitter.com/mnpse75R01
— Wolfe Daily Howl (@WolfeDailyHowl) February 18, 2020
— CEO Technician (@CEOTechnician) February 18, 2020
$silver against the pring inflation index (200 week moving average).
— Adrian (@highlevelTrader) February 18, 2020
— Archimedes (@AlphaTrader00) February 18, 2020
— Rick Ducat (@RickDucat_TDAN) February 18, 2020