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Today’s Summary
Wednesday, March 24th, 2021
Indices: US Stocks closed lower in today’s session. The Dow ended unchanged. The S&P 500 and Nasdaq fell 0.55% and 2.01%, respectively. The Russell 2000 underperformed the other major indices for the third straight day, dropping 2.35%.
Sectors: 5 of the 11 sectors closed higher. Energy led, gaining 2.51%. Communications lagged, falling 2.52%.
Commodities: Crude Oil futures rebounded 5.92% to $61.18 per barrel. Gold futures rose 0.47% to $1,733 per ounce.
Currencies: The US Dollar Index rose 0.21% to a four-month high.
Interest Rates: The 10-year US Treasury yield moved lower to 1.610%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$dxy #dollarindex — Update on similarity to 2018. pic.twitter.com/MSOhQvz1cG
— Nautilus Research (@NautilusCap) March 24, 2021
Today’s Chart of the Day was shared on Twitter by Nautilus Research (@NautilusCap). It’s a chart of the US Dollar Index over the past nine years. The Dollar Index bounced off long-term support in January and has been mean reverting higher ever since. It’s currently at a four-month high and testing its downward sloping 200-day moving average. How the Dollar behaves here will likely have macro implications. If the Dollar gets rejected at the 200-day and reverses lower, it would likely be a nice tailwind for things like Large-Caps, Commodities, and Emerging Markets. However, if the Dollar continues higher, it would likely put pressure on these areas of the market.
Quote of the Day
“Everybody has some information. The function of the markets is to aggregate that information, evaluate it, and get it incorporated into prices.”
– Merton Miller
Top Links
Commodities Counter-Trend Rally Going to End Here? – Kimble Charting Solutions
Chris Kimble takes a look at a potential reversal in Commodities.
Bitcoin Volatility Is Here to Stay, Top Technician Warns – CNBC
Ari Wald of Oppenheimer offers his technical perspective on Bitcoin.
Stock Market Video Analysis 3/24/21 – AlphaTrends.net
Brian Shannon reviews this week’s price action and lay’s out some key risk levels.
The 10-Year and 30-Year Bond Break Support – StockCharts.com
Carl Swenlin examines US Treasury yields.
What Is A Bear Market? – All Star Charts
JC Parets shares his thoughts on the current market environment.
Top Tweets
Another big down day for small caps and tech.
The question is: should we be surprised?$IWM is *still* up 95% over the last 12 months. $QQQ is up 70%.
— stef (@scheplick) March 24, 2021
$IWM having a tough week so far, off 6.57%. pic.twitter.com/Y9cDgj2Zcw
— Brian Lund (@bclund) March 24, 2021
A potential 38.2% retracement would put us at an interesting spot from a price (and behavioral) perspective… pic.twitter.com/kwyUgcgCpB
— Ian McMillan, CMT (@the_chart_life) March 24, 2021
This is what I call a distribution dominant tape. Churning near the highs then 4 distribution days. Accumulation day 8 days ago but right back under distribution 3 days later; since 2 more back to back distribution days w/ many pivot failures in individual names. Caution advised! pic.twitter.com/7cdW5IY007
— Mark Minervini (@markminervini) March 24, 2021
Speculative options activity is extremely pessimistic.$QQQ Put activity now among the highest spikes in history – much higher than MAR 2020.
Traders have given up on Growth & Tech – but some key names are showing *strength*, after quietly basing for months.
Follow the trend. pic.twitter.com/4UoL8ADmgO
— Macro Charts (@MacroCharts) March 24, 2021
Emerging Markets vs. S&P 500
Potential change in rate of trend here… pic.twitter.com/3flrQ0rRID
— Adaptiv (@adaptiv) March 24, 2021
$EEM pic.twitter.com/krJkAGgwhY
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) March 24, 2021
The US Dollar Index (#DXY) has risen to its highest level since November. A stronger #USD could derail the #reflation trade to a large extent. pic.twitter.com/wF3dTj4tZS
— jeroen blokland (@jsblokland) March 24, 2021
IF the Dollar Index is going to get moving, this is a logical place for it to do so.
I'm sure well all know the Inverse correlation with the S&P500 by now. If the broader market is going to come under further pressure, the dollar is probably moving higher. pic.twitter.com/LJpIt0btKp
— Sam McCallum (@honeystocks1) March 24, 2021
Electric car stock, but maybe not the one you're thinking. pic.twitter.com/g4GF1TGLUH
— Eddy Elfenbein (@EddyElfenbein) March 24, 2021