Wednesday, April 15th, 2020
Indices: US Stocks closed lower in today’s session with the Dow Jones Industrial Average falling 445 points or 1.86%. The S&P 500 and Nasdaq dropped 2.20% and 1.44%, respectively. The Russell was by far the worst of the major indices, tumbling 4.31%.
Sectors: All 11 sectors closed lower. Healthcare led but still slipped 0.51%. Energy lagged, dropping 4.70%.
Commodities: Crude Oil futures fell 4.56% to $19.87 per barrel. Gold futures fell 1.46% to $1,743 per ounce.
Currencies: The US Dollar Index rose 0.73%.
Interest Rates: The US 10-year Treasury yield moved lower to 0.636%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Neil Blalock, CMT (@NeilBlalock) April 15, 2020
Today’s Chart of the Day was shared on Twitter by Neil Blalock (@NeilBlalock). It’s a chart of the NYSE Advance-Decline Volume Index over the past two years, along with the S&P 500 index in the bottom pane. The NYSE Advance-Decline Volume Index is a breadth indicator that is calculated by subtracting the volume of declining stocks from the volume of advancing stocks on the NYSE. The sharp rebound rally over the past couple weeks has some market participants hoping for a V-Shaped recovery similar to what we saw after the Q4 2018 decline. However, Neil points out that this breadth indicator has begun to roll over, which tells us that market internals are not as strong as they were following the Q4 2018 decline. This is not supportive of the V-shaped recovery that some are anticipating.
Quote of the Day
“The only thing I have a strong conviction about right now is that nobody should have a strong conviction about anything right now.”
– Walter Deemer (Technical Analyst)
Despite Massive Rally In Stocks, Risk-On MIA – Be It Through Lens Of Copper Vs Gold, Small-Caps Vs Large-Caps Or Offensives Vs Defensives – Hedgopia
Here’s a good read that highlights some of the key risk ratios that are not confirming the recent rebound in stocks.
Short-Term Optimism Has Spiked – SentimenTrader
Jason Goepfert examines what historically happens following short-term spikes in optimism, like the one we’ve recently seen.
Netflix (NFLX) Back to Outperforming – Bespoke
Bespoke points out that Netflix is breaking out on both an absolute and relative basis.
Small-Caps Have Gotten Smaller – Topdown Charts
In this note, Mike Zacardi discusses the massive underperformance from Small-Caps relative to Large-Caps.
Europe Running Out Of Gas Here? Counter-trend Peaks In Place? – Kimble Charting Solutions
Chris Kimble explains that the three major European equity indices (DAX, CAC, and FTSE), are all running into overhead resistance along with the S&P 500.
Top 10 Tweets
Eight S&P 500 stocks made 52-week highs today, the most since March 5.
— Callie Cox (@callieabost) April 15, 2020
The current bear market bounce is 27.2%, which is about as large as you will see on a bear market rally.
Which leads to the next question, is the bear market over already? pic.twitter.com/K27ZaE4Nql
— Ryan Detrick, CMT (@RyanDetrick) April 15, 2020
After rising over 2.5% yesterday, we closed today below yesterday's low.
That happened twice during the March decline and three times in 2008, normal bear market price action. pic.twitter.com/lLaOjI2ml1
— Andrew Thrasher, CMT (@AndrewThrasher) April 15, 2020
So many are expecting a retest of the March 2020 lows. What if that WAS the retest of the low that was put in 65 weeks ago? FWIW that's happened twice since the credit crisis lows; first in 2010 at 65 weeks b/w lows then again in 2014 at 68 weeks b/w lows? pic.twitter.com/VOfX8Vd9yj
— Todd Gordon (@toddgordontrade) April 15, 2020
The IPO Index $IPO is back above that $28 level, which last year acted as support. Not only would it show risk appetite in the overall market if we held a potential retest, but the fact we've actually broken above is one good piece of information in this market. pic.twitter.com/cCLyf484UE
— Louis (@haumicharts) April 15, 2020
Key level here for S&P priced in #gold. Support has held 3 previous times. Last 3 wks showing a bounce on 4th test. RSI turning up from extremely oversold conditions. Suggests to me gold due for a breather. $GLD $GDX $GDXJ pic.twitter.com/HVsWyAm4FN
— Tarek I. Saab (@FibLines) April 15, 2020
— Liz Ann Sonders (@LizAnnSonders) April 15, 2020
— Charlie Bilello (@charliebilello) April 15, 2020
— Mark Ungewitter (@mark_ungewitter) April 15, 2020
Lowest retail sales in history????
I guess the bean counters do not include toilet paper, water and spray disinfectant in their tally
Markets are not back to reality pic.twitter.com/nCEpI7l8Kv
— Peter Brandt (@PeterLBrandt) April 15, 2020