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Today’s Summary
Tuesday, April 7th, 2020
Indices: US Stocks closed slightly lower in today’s session with the Dow Jones Industrial Average slipping 26 points or 0.12%. The S&P 500 and Nasdaq closed lower by 0.16% and 0.33%, respectively. The Russell 2000 was the strongest of the major indices and managed to close slightly positive by 0.03%.
Sectors: Materials led, gaining 2.66%. Utilities lagged, falling 1.25%.
Commodities: Crude Oil futures moved lower by 1.58% to $26.22 per barrel. Gold futures fell 0.86% to $1,680 per ounce.
Currencies: The US Dollar Index dropped 0.82%.
Interest Rates: The US 10-year Treasury yield rose to 0.712%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
What carries more weight for this past session's $SPX performance: a second consecutive strong bullish gap on open (global risk on) or reversal to close lower on the day (local risk off)? pic.twitter.com/jETCVa0MqB
— John Kicklighter (@JohnKicklighter) April 7, 2020
Today’s Chart of the Day was shared on Twitter by John Kicklighter (@JohnKicklighter). It’s a daily candlestick chart of the S&P 500. John posses an interesting question. Which carries more weight — the fact that the index gapped higher for the second day in a row, or, the fact that the index sold-off throughout the day? John suggests that these bullish opening gaps reflect global risk-on sentiment, as traders overseas bid up index futures overnight. However, today’s gap failed to follow-through to the upside, as US traders sold into the move throughout the session. As John points out, this demonstrates risk-off sentiment here in the US. Given these two pieces of contradictory evidence, which one carries more weight — the bullish opening gap or the lack of subsequent follow through?
Quote of the Day
“The past can hurt. But the way I see it, you can either run from it, or learn from it.”
– Rafiki (The Lion King)
Top Links
The Flight to Safety – Of Dollars And Data
Data scientist, Nick Maggiulli examines what the recent “dash for cash” could mean for the markets going forward.
Volatility Remains High – Bespoke
Bespoke explains that volatility remains elevated despite the 19% rally in the S&P 500 over the past couple of weeks.
The Russell 2000’s Weekly Bear Flag Setup – StockCharts.com
Michele Schneider takes a look at the potential bear flag pattern that is forming on the chart of the Small-Cap Russell 2000 index.
DAX Index Hits Two 18-Year Support Lines, Creates Large Bullish Reversal – Kimble Charting Solutions
Chris Kimble points out that the German DAX index bounced at a confluence of two long-term support levels, which he says is a bullish development for this major index.
Stock Trading Ideas for 4/8/20 – AlphaTrends.net
In this video, Brian Shannon walks viewers through some potential swing trading setups.
Top 10 Tweets
The S&P 500 was up 3.5% this morning.
We closed red.
— Eddy Elfenbein (@EddyElfenbein) April 7, 2020
Hate to be the cops at a fun and rowdy market party, BUT – this is a bear market bounce – likely giving us a fade sometime here – how to tell? Watch your price – support breakout was 2650 to 2707ish. Be very careful with buy and hold here $ES_F pic.twitter.com/pwaGoxeg9N
— Anne-Marie Baiynd (@AnneMarieTrades) April 7, 2020
$SPX pausing at first piece of overhead supply. pic.twitter.com/u1BqsQl7vn
— Mark Arbeter, CMT (@MarkArbeter) April 7, 2020
A new bull market in stocks, or just a bear market rally? $SPY $QQQ
A double top in Treasuries, or just a consolidation before further upside? $TLT
A bottom in industrial metals, or just a dead cat bounce?
A peak in the $USD Index, or just a counter-trend rally? pic.twitter.com/ZlSt0p8wl4
— Tiho Brkan (@TihoBrkan) April 7, 2020
For your consideration. ?
Russell 2000 $IWM vs S&P 500 $SPY
[Yes. This is Total Return.] pic.twitter.com/C6zDCdoJWL— David Zarling (@AdaptivCharts) April 7, 2020
Tech has been the juice and it's all about a confluence of resistance around 85. Fibonacci retracement level and the 200-day moving average, all wrapped into one price point. So far we have a break above but a close below which would not be encouraging here. $XLK pic.twitter.com/PJ0xOo2zWE
— David Keller, CMT (@DKellerCMT) April 7, 2020
Looking at the past 18 times (since 1990) the VIX shot above 30, volatility remained relatively high for 3 months on average. pic.twitter.com/OqULwV6nnQ
— Mark Minervini (@markminervini) April 7, 2020
Looking at the past 18 times (since 1990) the VIX shot above 30, volatility remained relatively high for 3 months on average. pic.twitter.com/OqULwV6nnQ
— Mark Minervini (@markminervini) April 7, 2020
— Nautilus Research (@NautilusCap) April 7, 2020
Copper moving off of its lows is an encouraging sign. pic.twitter.com/oVSzCeBqkK
— Willie Delwiche (@WillieDelwiche) April 7, 2020
12 recessions since WWII.
The S&P 500 bottomed on avg about 5 months before the recession ended.
Always remember this, stocks tend to lead the economy. pic.twitter.com/xmpS0K2gVE
— Ryan Detrick, CMT (@RyanDetrick) April 7, 2020