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Today’s Summary
Wednesday, May 6th, 2020
Indices: US Stocks were mixed in today’s session. The Dow Jones Industrial Average dropped 218 points or 0.91%, while the Nasdaq managed to close higher by 0.51%. The S&P 500 and Russell 2000 fell 0.70% and 0.82%, respectively.
Sectors: 10 of the 11 sectors closed lower. Technology was the only sector to close higher, rising 0.78%. Utilities lagged, falling 3.40%.
Commodities: The June Crude Oil futures contract moved lower by 1.91% to $24.09 per barrel. Gold futures dropped 1.43% to $1,686 per ounce.
Currencies: The US Dollar Index rose 0.36%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.705%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The mkt's been at current levels for 3 wks now, neither pushing higher nor rolling over. A pretty good standoff btw those who think the ricochet from 3/23 has more room to run, & those who think the rebound is overdone/basically out of gas. Our thinking: we roll over here. $SPX pic.twitter.com/eVu1ACOvQ8
— Carter Braxton Worth (@CarterBWorth) May 6, 2020
Today’s Chart of the Day was shared on Twitter by Carter Worth of Cornerstone Macro (@CarterBWorth). It’s a 60-minute bar chart of S&P 500 Futures since the March 23 low. Carter points out that Mr. Market has been fooling both the bulls and the bears over the past three weeks, as price has gone virtually nowhere. His chart annotations show that price has formed a head & shoulders topping pattern, and broke the uptrend line from the March low. As buyers and sellers battle it out at this key level, Carter says he thinks price will roll over. Let us know what you think – Will the next 10% move for the S&P 500 be higher or lower from here?
Quote of the Day
“To think is easy. To act is hard. But the hardest thing in the world is to act in accordance with your thinking.”
– Johann Wolfgang von Goethe (Writer)
Top Links
Stocks Are Flat With Tech Leading; Todd Sohn Weighs In – TD Ameritrade Network
Todd Sohn of Strategas Research shares his technical perspective on the markets.
No Love for the Banks – Bespoke
Bespoke highlights the strongest and weakest industry groups in the S&P 500.
The Beauty of the Biotechnology ETF Channel – StockCharts.com
Michele Schneider breaks down a chart of the Biotech ETF, $IBB, and points out that price has been in a well-defined channel for the past five years.
Financials’ Lowest Relative Close Since March 2009 – All Star Charts
In this quick read, JC Parets discusses the weakness in the Financial sector.
Remembering the Flash Crash – LPL Financial Research
Today marks the 10-year anniversary of the 2010 Flash Crash. In this note, the team at LPL Financial Research takes a look back at this wild day in stock market history.
Top 10 Tweets
Everyone watching that 61.8% retracement in $SPX pic.twitter.com/ApemINt1Hd
— Michael Antonelli (@BullandBaird) May 6, 2020
Nothing to see here: NASDAQ Composite up over 1% on the day with more stocks down than up. pic.twitter.com/kDDUj18nwk
— Willie Delwiche (@WillieDelwiche) May 6, 2020
We thought the following quote from Bob Farrell best exemplifies the percentage of issues outperforming the S&P 500 Index. "Markets are strongest when they are broad and weakest when they narrow to a handful of blue chip names." pic.twitter.com/pneExuuwN5
— Turning Point Macro Research (@TPMacroResearch) May 6, 2020
Volatility has receded for stocks but not many equities are above their 200d moving average—signaling still-weak breadth @SoberLook @StateStreetETFs pic.twitter.com/d2jWvNdkPw
— Liz Ann Sonders (@LizAnnSonders) May 6, 2020
Six weeks ago, literally zero $SPX names above their 50-day MA. Then up to almost 80%. Now down to mid-50's. That means about 20% of S&P 500 stocks have gone back below their 50-day in the last week. pic.twitter.com/p0dluoIsX2
— David Keller, CMT (@DKellerCMT) May 6, 2020
S&P500: hourly chart
Be careful as long as we trade below 2890. Could be some some sort of a topping formation…$spy $spx #trading pic.twitter.com/NO4YdhOUyw
— Adrian (@highlevelTrader) May 6, 2020
Most Important Chart RN – Fed announced 4/9 it'll buy bond ETFs like $LQD helping boost recent rally. Led to 25% surge in volume(green box). Just broke 20 day MA, will 50 day MA and gap fill be support?Key test if recent $SPY $SPX action is healthy digestion or low retest to come pic.twitter.com/zCCp52PiID
— Michael Sroga, CMT (@M_Sroga) May 6, 2020
The Maurice Doctrine — that commodity stocks usually move ahead of the underlying commodity — about to be put to the test in $GOLD. (Originated by Putnam Growth Fund manager John Maurice back in the 1970's.) pic.twitter.com/0INnnScHru
— Walter Deemer (@WalterDeemer) May 6, 2020
There are naughty charts circulating using deceptive scaling to compare the current stock market to that of 1929. These are known as analogs. Here is a proper comparison, the Dow Industrials, peaks aligned and indexed to 100 one year prior. $DJIA pic.twitter.com/92Nz6EuAEK
— John Bollinger (@bbands) May 5, 2020
On this day in 2010, the flash crash temporarily caused $1 trillion in market value to disappear in about 30 minutes pic.twitter.com/hcoRXNj7zQ
— Market Crumbs (@MarketCrumbs) May 6, 2020