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Today’s Summary
Tuesday, May 26th, 2020
Indices: US Stocks kicked off the abbreviated week on a positive note with the Dow Jones Industrial Average advancing 530 points or 2.17%. The Nasdaq inched up 0.17%, while the S&P 500 gained 1.23%. Small-Caps outperformed with the Russell 2000 jumping 2.77%.
Sectors: Financials led, gaining 5.20%. Health Care lagged, slipping 0.18%.
Commodities: The July Crude Oil futures contract inched lower by just 0.17% to $33.35 per barrel. Gold futures fell 1.30% to $1,706 per ounce.
Currencies: The US Dollar Index dropped 0.80%.
Interest Rates: The US 10-year Treasury yield rose to 0.701%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Here are the two other times the S&P 500 had been below its 200-day MA for at least 50 days, broke above but then closed under the moving average. Interestingly, both were also in May. pic.twitter.com/WdFhdLB86r
— Andrew Thrasher, CMT (@AndrewThrasher) May 26, 2020
Today’s Chart of the Day was shared on Twitter by Andrew Thrasher (@AndrewThrasher). The S&P 500 spent the majority of today’s session above its 200-day moving average and was on track for its first close above it in 56 trading days. Unfortunately for the bulls, we ended up closing just a hair below it. Since 1950, there have only been two prior instances where the S&P 500 spent at least 50-days below the 200-day moving average, tested it intraday but failed to close above it. The first was in May 1982, and the second was in May 2008. This is a crucial test for the index. The bulls need price to close and hold above it for a few sessions to confirm a breakout. For more on this, check out this other chart from Andrew.
Quote of the Day
– Paul Tudor Jones II (Hedge Fund Manager)
Top Links
The S&P 500 Breaks 3,000…Again – Crossing Wall Street
Here’s a quick note from Eddy Elfenbein, in which he takes the pulse of today’s market.
Copper Indications – SunSoft Analytics
Bhagyashree Urdhwareshe shares her thoughts on the recent strength in Copper.
Why I’m DART-ing Away From Retail Trading Data – All Star Charts
Steve Strazza weighs-in on the recent surge in retail trading activity.
I Hated Buying Equities in April…But I Did it Anyway – PortfolioWise
Dan Russo discusses the importance of recognizing your cognitive biases when it comes to trading/investing.
The Dips Keep Getting Bought – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon and Ivanhoff highlight some of the strongest stocks, trends, and themes across the market.
Top 10 Tweets
You know that feeling, when you start the week and you feel like you can tackle the world?
Investors these days definitely do.
The S&P 500 is poised for its fifth straight green first day of the week, the longest streak since May 2017.
— Callie Cox (@callieabost) May 26, 2020
With a flat 200 DMA, “we put less emphasis on whether price is above or below it. It’s possible we can see another push towards 3,100-3,130 .. but if large-cap growth takes a breather then it’s unlikely we get much above that in the near-term.” @jkrinskypga pic.twitter.com/4mwwhlxAZJ
— Carl Quintanilla (@carlquintanilla) May 26, 2020
Small inverted hammer on $SPX at resistance. pic.twitter.com/M2Z0Fn6dxd
— Brian Lund (@bclund) May 26, 2020
On heels of worst quarter in over a decade, $SPX now working on best quarter in over two decades (though still below where it began the year).
Weakness priming pump for strength or volatility begetting volatility? pic.twitter.com/KX4nXbsB2b— Willie Delwiche (@WillieDelwiche) May 26, 2020
With $QQQ as close as it is to its ATHs, $RUT is not anywhere close to its ATHs set in Aug 2018. In fact, $RUT still trades below its 2019 sideways channel lows. pic.twitter.com/vfvDfHgpG3
— David Settle, CMT (@davidsettle42) May 26, 2020
Previewing a sentiment chart that I'm sharing on @BloombergTV at 4:45pm…bearishness is still prevalent enough to suggest investors may feel underinvested after last week's $SPX breakout #fairleadstrategies pic.twitter.com/7sAjW6I8bY
— Katie Stockton, CMT (@StocktonKatie) May 26, 2020
The struggle of value investors vs growth investors has been real, persistent and brutal. Here's the drawdown of value vs growth back to the 1920s…..ouch. pic.twitter.com/uK5N0Fpt9f
— RenMac: Renaissance Macro Research (@RenMacLLC) May 26, 2020
Here's the real range break $BBDXY $SPX pic.twitter.com/Pmw7fTCtAK
— Abigail Doolittle (@TheChartress) May 26, 2020
$FB Facebook …Nice two-year consolidation after a multi-year run. Seems quite normal and constructive, if you ask me. pic.twitter.com/QKhxWjj2Yc
— Ian McMillan, CMT (@the_chart_life) May 25, 2020
Only about 10% of the ~6% move in the $SPY past 7 days was, in aggregate, during open hours- close to 90% was overnight/premkt coming into the past 2 Mondays…
— Chad Kusserow (@VetTechTrader) May 26, 2020