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Today’s Summary
Friday, August 27th, 2021
Indices: US Stocks ended the week on a positive note, with the Dow advancing 243 points or 0.69%. The S&P 500 rose 0.88% logging its 52nd all-time high this year. The Nasdaq also closed at an all-time high, gaining 1.23%. The Russell 2000 outperformed, rising 2.85%.
Sectors: 9 of the 11 sectors closed higher. Energy led, gaining 2.67%. Health Care lagged inching lower by just 0.11%.
Commodities: Crude Oil futures moved higher by 1.96% to $68.74 per barrel. Gold futures gained 1.35% to $1,820 per ounce.
Currencies: The US Dollar Index fell 0.39%.
Interest Rates: The 10-year US Treasury yield dropped to 1.310%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
88% upside day at 11:30. And, as it turned out, this chart *was* kinda important… pic.twitter.com/g0mDbQ21UC
— Walter Deemer (@WalterDeemer) August 27, 2021
Today’s Chart of the Day was shared by Walter Deemer (@WalterDeemer). It’s a daily bar chart of the Small-Cap Russell 2000 ETF, $IWM, over the past 11 months. The Russell 2000 ended the week on a positive note, busting through its 50-day moving average and closing at its highest level since July 12th. Also, it outperformed the other major indices this week by a wide margin, gaining 5% while the S&P 500 rose 1.5%. Small-Caps have been range-bound for the majority of this year, and they remain locked in that range. However, it’s a huge win for the bulls that they didn’t die at crucial support this week. As we know, Small-Caps often lead the broader market higher or lower. The next objective will be to see how price behaves at the upper bounds of the range, around $233. As we discussed earlier this week, Small-Caps have a bullish seasonal tailwind relative to Large-Caps over the next couple of weeks (end of August until mid-September). At this rate, it’s entirely possible that the Russell 2000 tests record highs next week.
Quote of the Day
“Nothing is a waste of time if you use the experience wisely.”
– Auguste Rodin
Top Links
Is This It? – All Star Charts
The team at All Star Charts takes a look at the recent reversal in Small-Caps.
Stock Market Analysis for Week Ending August 27, 2021 – Brian Shannon
Brian Shannon analyzes this week’s price action and lays out a few key levels to be aware of.
A Whole Lot of Nothing! – Potomac Fund Management
Dan Russo shares some key points about the current market environment.
Where Do We (Investors) Stand? – David Cox
In this quick video, David Cox highlights some noteworthy technical developments to keep an eye on in the near term.
Learn Why Charting Is An Important Part Of Investing – Money Tree Podcast
Here’s a fun podcast that I was featured on recently. I discuss the value of looking at the markets through the lens of Technical Analysis.
Top Tweets
S&P closes at an all-time high for the 52nd time this year and 328th time since the start of 2013.
It has now surpassed the epic run from 1989-2000 in which the S&P 500 hit 327 all-time highs.$SPX pic.twitter.com/c0nzCGOIbE
— Charlie Bilello (@charliebilello) August 27, 2021
It's just a Buy Everything day. We've seen this before. @KoyfinCharts pic.twitter.com/OpMdydPLFg
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) August 27, 2021
umm, like the three days of gobs of breadth was one thing earlier this week, and now, on a Friday we run +84% up volume to cap off the week? wow. pic.twitter.com/0ehdeRBg9N
— David Cox, CMT, CFA (@DavidCoxWG) August 27, 2021
Two views of Offense vs. Defense – cap weight and equal weight
Offense lookin' strong… ? $XLY $XLP $RCD $RHS pic.twitter.com/1udTiwSRn7
— Grayson Roze (@GraysonRoze) August 27, 2021
New ATHs for Small-Cap Growth $IJT pic.twitter.com/A2w26arTaF
— Steven Strazza (@sstrazza) August 27, 2021
Communication Services are breaking out to new ATH's. Next target is the 261.8% fib level if it can hold. $XLC pic.twitter.com/gL0v1J0Pct
— Matthew Timpane, CMT (@mtimpane) August 27, 2021
$SMH more new highs
Price has poked over previous highs twice prior and faded back. Following the recent 2-week pullback we are now seeing further follow-through higher
Likely this shook the tree a few times to get as many people off the ride as possible, now looks ready pic.twitter.com/VdhGZH5dcy
— Cody Freeman (@ZenTrends) August 27, 2021
Base Breakouts everywhere $QQJ $PSCT $BOTZ pic.twitter.com/Ie4Qy9CSLI
— Pratyush Tulsian (@PrattyCharts) August 27, 2021
$XLF …knocking at the door..also why? Rates are low and consumer sentiment is declining…. pic.twitter.com/eFiQ2g73JJ
— jim iuorio (@jimiuorio) August 27, 2021
I’m paying close attention to this.
Nat gas is having its best performance in 15 years.
I think this move has legs and it could have profound inflationary implications. pic.twitter.com/RJenQzJgs0
— Otavio (Tavi) Costa (@TaviCosta) August 27, 2021
?Nat gas ?#naturalgas $UNG pic.twitter.com/cWmtn64wuN
— Greg Rieben (@gregrieben) August 27, 2021
Free breadsticks picking up attention at Olive Garden? Potential breakout after a consolidation?
Not a Recommendation pic.twitter.com/cwnBsb312r
— James Boyd (@JBoyd_TDA) August 27, 2021
You’re all caught up now. Thanks for reading!