Monday, September 20th, 2021
Indices: US Stocks kicked off the week on a sour note, with the Dow falling 614 points or 1.78%. The S&P 500 and Nasdaq closed lower by 1.70% and 2.19%, respectively. The Russell 2000 underperformed, dropping 2.44%.
Sectors: All 11 sectors closed lower. Utilities led, but still fell 0.93%. Energy lagged, dropping 4.22%.
Commodities: Crude Oil futures fell 1.94% $70.43 per barrel. Gold futures rose 0.76% to $1,765 per ounce.
Currencies: The US Dollar Index was flat (0.03%).
Interest Rates: The 10-year US Treasury yield moved lower to 1.312%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Michael Antonelli (@BullandBaird) September 20, 2021
Today’s Chart of the Day was shared by Michael Antonelli (@BullandBaird). The S&P 500 fell 1.70% today, marking the fifth-worst day so far this year. The current drawdown is 3.95% on a closing basis, which as Michael points out, makes this the third-largest pullback we’ve seen in 2021. The largest pullback this year took place in early March with the S&P 500 falling as much as 4.23%. The average year sees about three pullbacks of 5% or more. So, it has been unusually calm so far this year, and a pullback of this magnitude is completely normal. It’s also important to keep in mind that this is happening during a seasonally weak time of year. Not only is this historically one of the worst months for the S&P 500, but it’s also one of the worst weeks as well.
Quote of the Day
“Only when the tide goes out do you discover who’s been swimming naked.”
– Warren Buffett
Ugly Day Comes to a Close – Crossing Wall Street
Eddy Elfenbein sums up today’s volatile price action.
Should Investors Be Spooked by Fall Seasonality? – Schaeffer’s Investment Research
Matthew Timpane offers his perspective on September/October seasonality.
Seasonal Weakness is Almost Over – All Star Charts
JC Parets points out that seasonal cycles flip from bearish to bullish soon.
Wear You Out – The Weekly Trend
In this podcast, David Zarling and Ian McMillan highlight the most important technical developments they’re watching.
Doc Copper Sending a Historically Bearish Message To Stocks? – Kimble Charting Solutions
Chris Kimble points out that Copper is forming a bearish descending triangle pattern.
The week after September OpEx (this week) is one of the worst of the year.
History is rhyming so far… https://t.co/wiYyuVv9YK
— Ryan Detrick, CMT (@RyanDetrick) September 20, 2021
$SPX hasn’t posted three consecutive red weeks since September 2020.
–Trivia Dept. pic.twitter.com/PjFDMx5cKx
— Mark Ungewitter (@mark_ungewitter) September 20, 2021
There goes the 50-day. After avoiding two consecutive closes below it for the duration of 2021, the S&P looks set to end that streak today pic.twitter.com/v60uD5MBhE
— Scott Brown, CMT (@scottcharts) September 20, 2021
Only 44% of stocks are trading above their 50-day MA (a/o yday). The peak was 92% back in March. While the S&P 500 price index, fueled by the FAANGS, has continued to march higher, this could suggest the market has been in a stealth correction for the past six months. pic.twitter.com/xPTo89uhcu
— Jurrien Timmer (@TimmerFidelity) September 20, 2021
— Aksel Kibar, CMT (@TechCharts) September 20, 2021
When $VIX closes as far outside it's upper BB, we are generally at or near a short term bottom, $SPX. Even in the Feb '20 disaster, this marked at least a 1 day reprieve. This time – ? pic.twitter.com/QCDLiaPR6n
— Alan Cohen (@al_xdpg) September 20, 2021
The drop off in volatility toward the end of todays session looks to be quite consistent with previous spikes throughout the year so far.
Are we just getting started? Or was that it? pic.twitter.com/UwQI0NJcLF
— Sam McCallum (@honeystocks1) September 20, 2021
Everyone with a foot out the door (again):
Today's Low TICK is the *2nd lowest* ever (31 years).
Prior extremes marked capitulation selling – Stocks had minimal further losses & bottomed within 0-2 days.
All but one record spike came in the last year – is this time different? pic.twitter.com/oWuzOxr6nP
— Macro Charts (@MacroCharts) September 20, 2021
The Nasdaq 100 is at a logical place to take a break relative to US Treasury Bonds.
— Alfonso Depablos (@AlfCharts) September 20, 2021
PANIC SELLING ROCKS WALL STREET!!! pic.twitter.com/lEIcwYnw6R
— Eddy Elfenbein (@EddyElfenbein) September 20, 2021
You’re all caught up now. Thanks for reading!