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Today’s Summary
Thursday, March 25th, 2021
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 199 points or 0.62%. The S&P 500 and Nasdaq rose 0.52% and 0.12%, respectively. The Russell 2000 outperformed gaining 2.29%.
Sectors: 9 of the 11 sectors closed higher. Financials led, gaining 1.68%. Communications lagged, falling 0.49%.
Commodities: Crude Oil futures dropped 4.28% to $58.56 per barrel. Gold futures fell 0.47% to $1,725 per ounce.
Currencies: The US Dollar Index rose 0.35%.
Interest Rates: The 10-year US Treasury yield moved higher to 1.635%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$SPX, daily
Three Bull Traps. Prior two led to substantial 'corrections'. Will the March'21 Bull Trap have the same consequences?
3700 is the key pivot. SPX is still above this level, however, if it drops below 3700 in the next several sessions, this will be a major red flag. pic.twitter.com/zp5WURNTFS
— Yuriy Matso (@yuriymatso) March 25, 2021
Today’s Chart of the Day was shared on Twitter by Yuriy Matso (@yuriymatso). It’s a daily candlestick chart of the S&P 500 over the past three years. The S&P 500 has formed a potential Bull Trap or Failed Breakout as it’s also referred to. This occurs when price breaks out but fails to hold above the breakout level, often leading to a sharp move in the opposite direction. As you can see, the last two major declines started with Failed Breakouts. The good news is that price has not confirmed this bearish pattern yet, so it’s still too early to act on. However, if price closes below 3,700 in the near-term, watch out below!
Quote of the Day
“In bear markets, stocks usually open strong and close weak. In bull markets, they tend to open weak and close strong.”
– William O’Neil
Top Links
Bullish Sentiment Back Above 50% But Is That A Good Thing? – Bespoke
Bespoke analyzes the results of the latest AAII Sentiment Survey.
When In Doubt, Get Smaller – All Star Charts
JC Parets weighs-in on the recent choppiness in the market.
Oil – Buy The Dip? Or Sell The Rip? – Rieben Financial
Greg Rieben shares his thoughts on Crude Oil and more.
Out On A Limb: Market Top is Comming! – StockCharts.com
In this video, Larry Williams shares some of his favorite technical tools and explains why he thinks the market is due for a decline.
China Stocks Sending Troubling Message To The World – Kimble Charting Solutions
Chris Kimble examines a long-term chart of the China ETF, $FXI.
Top Tweets
How the market closes > how the market opens
— Willie Delwiche (@WillieDelwiche) March 25, 2021
? At open ? vs ? at close ? pic.twitter.com/Dwo0ba7cfa
— unusual_whales (@unusual_whales) March 25, 2021
And perhaps this is a logical point for the Dow to also drag the market higher? pic.twitter.com/7ZCu4M3HyU
— Sam McCallum (@honeystocks1) March 25, 2021
Managed to close right back in range… but being that Tech is still the weakest of the 4 henchmen, I'll be looking again for opportunities top short rally's back towards the top of the range $QQQ pic.twitter.com/foOrf5Fzb1
— Rolando Santos (@TKPTrader) March 25, 2021
Technology stocks are now dead last in YTD performance. Quite a turnaround from first place last year. Likewise, Energy has gone from last to first.https://t.co/wyfH3UcCAS pic.twitter.com/PahVjAGIFU
— Randy Frederick (@RandyAFrederick) March 25, 2021
Ascending triangles are normally a continuation pattern… $FB $AAPL $AMZN $NFLX $GOOG pic.twitter.com/Ev5LQt9zd1
— Grant Hawkridge (@granthawkridge) March 25, 2021
probably two of the most important consolidations for investors to be watching. A leader in stocks and a leader for interest rates. Downside resolutions would point to a longer correction for equities and other risk assets pic.twitter.com/BX9qZg0AwB
— J.C. Parets (@allstarcharts) March 25, 2021
US Dollar Index $DXY pic.twitter.com/0UlxX1G8Nt
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) March 25, 2021
The spread between #stocks and #bonds is as wide as it's been since the Taper Tantrum of 2013, as this chart shows. If and when the jaws close, my sense is that the action will come from bonds finding a bid. pic.twitter.com/JR41ZkY4v8
— Jurrien Timmer (@TimmerFidelity) March 25, 2021
$TLT with a divergence at the recent lows/ pic.twitter.com/WsMIm59pQU
— Dan Russo, CMT (@DanRusso_CMT) March 25, 2021
Popular trades in 2020 & into early-2021 have been fading … Renaissance IPO index, SPAC index, most-shorted stocks & non-profitable tech companies continuing to weaken markedly from late-Jan/early-Feb @Bloomberg
[Past performance is no guarantee of future results] pic.twitter.com/pMwPmEjZne— Liz Ann Sonders (@LizAnnSonders) March 25, 2021
The Special Purpose Acquisition Company ETF ($SPAK) just erased all gains since its launch in October pic.twitter.com/99XiTE9GsK
— Andrew Rummer (@AJRummer) March 25, 2021