Friday, April 3rd, 2020
Indices: US Stocks ended the week on a sour note today with the Dow Jones Industrial Average closing lower by 361 points or 1.69%. The S&P 500 and Nasdaq fell 1.51% and 1.53%, respectively. The Russell 2000 was by far the weakest of the major indices, dropping 3.11%.
Sectors: Consumer Staples was the only sector to close higher, gaining 0.78%. Utilities lagged, falling 3.57%.
Commodities: Crude Oil futures continued to rebound by 14.53% to $29.00 per barrel. Gold futures moved higher by 0.83% to $1,649 per ounce.
Currencies: The US Dollar Index gained 0.58%.
Interest Rates: The US 10-year Treasury yield slipped to 0.591%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Grant Hawkridge (@granthawkridge) April 3, 2020
Today’s Chart of the Day was shared on Twitter by Grant Hawkridge (@granthawkridge). It’s a ratio chart showing a basket of the offensive sectors (Financials, Technology, and Consumer Discretionary) versus a basket of the defensive sectors (Consumer Staples, Utilities, and Health Care). When the line is rising, it means offensive sectors are outperforming defensive sectors and vice versa. This ratio gives us a good indication of risk appetite among market participants. When offensive sectors are outperforming, it shows us market participants are willing to take on risk in the more aggressive sectors. On the other hand, when defensive sectors are outperforming, it suggests risk aversion among market participants as they prefer to hide out in the “safer” areas of the market. As Grant points out, this ratio has tested and held above a key support level. For now, this supports the bull case for the broader market.
Quote of the Day
“Aspire to Inspire before you Expire!”
– Eugene Bell Jr. (Author)
A Technical Look at Market Internals – LPL Financial Research
The team at LPL Financial Research points out that fewer stocks in the S&P 500 are making new 52-week lows.
Does Weak Breadth Cancel an Almost Thrust? – SentimenTrader
Earlier this week, we talked about the potential for a Zweig Breadth Thrust. With today’s weakness, the signal failed to come to fruition. However, Jason Goepfert argues that the fact that it was almost triggered is still a positive sign for the broader market.
Is The Stair-Step Higher for Apple Over? – All Star Charts
JC Parets takes a look at a chart of Apple Inc. ($AAPL) and points out that the stock has respected Fibonacci levels almost perfectly over the past decade.
Depression Coming or Is the Bottom Already In? Joe Friday Says Your Answer Lies Here! – Kimble Charting Solutions
Chris Kimble discusses what recent price action in the commodity markets could be signaling for the stock market.
Stock Market Video Analysis for Week Ending 4/3/20 – AlphaTrends.net
Here’s Brian Shannon’s weekly stock market recap video, in which he recaps this week’s price action and lays out some levels of interest to keep an eye on next week.
Top 10 Tweets
What's the more appropriate headline for this week?$SPX fails to follow through, falls for 3rd time in 4 weeks & finishes 6% below its weekly high.
OR$SPX holds above 2,450 multiple times, maintains the majority of last week's rally and is still +13.5% from its low.
— Frank Cappelleri (@FrankCappelleri) April 3, 2020
— ukarlewitz (@ukarlewitz) April 3, 2020
As of end of Q1, stocks were off to worst start since daily price data began in 1988; while 30y Treasuries were off to best start since daily price data began in 1973 @biancoresearch @bloomberg
[Past performance is no guarantee of future results] pic.twitter.com/m6fAL6MNi6
— Liz Ann Sonders (@LizAnnSonders) April 3, 2020
I am quite certain that Richard W. Schabacker, Robert Edwards and John Magee would interpret this chart as a broadening top, a primary reversal pattern. pic.twitter.com/8tRys9HFTQ
— Peter Brandt (@PeterLBrandt) April 3, 2020
Huge relative breakout for Healthcare. pic.twitter.com/2LR0iyYJty
— Strategas (@StrategasRP) April 3, 2020
— Shane C. Murphy (@murphycharts) April 3, 2020
— Wolfe Daily Howl (@WolfeDailyHowl) April 3, 2020
— Mark Ungewitter (@mark_ungewitter) April 3, 2020
— Bespoke (@bespokeinvest) April 3, 2020
Average S&P 500 returns by day since Feb. 19:
Monday: -3% 🤢
Tuesday: 2.1% 😎
Wednesday: -1.6% 😞
Thursday: -1.2% 😒
Friday: -0.5% 🤷🏼♀️ 🍻
— Callie Cox (@callieabost) April 3, 2020