Wednesday, September 23rd, 2020
Indices: US Stocks closed lower in today’s session with the Dow Jones Industrial Average falling 525 points or 1.92%. The S&P 500 and Nasdaq dropped 2.37% and 3.02%, respectively. Small-Caps underperformed, with the Russell 2000 sliding 3.04%.
Sectors: All 11 sectors closed lower by more than 1%. Health Care led, but still slipped 1.03%. Energy lagged, dropping 4.52%.
Commodities: Crude Oil futures inched higher by 0.33% to $39.93 per barrel. Gold futures continued lower by 1.89% to $1,868 per ounce – a two month low.
Currencies: The US Dollar Index rose 0.39%.
Interest Rates: The US 10-year Treasury yield was unchanged.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Go go greenback. Classic(?) three drives lower with RSI divergence. pic.twitter.com/YScJUxY7Rc
— Michael Kahn, CMT (@mnkahn) September 23, 2020
Today’s Chart of the Day was shared on Twitter by Michael Kahn (@mnkahn). It’s a daily bar chart of the US Dollar Index over the past year. The US Dollar moved higher for the fourth straight day today and is now trading above that crucial $94 level. In recent weeks, we’ve continuously noted that Dollar strength would likely be a headwind for other risk assets, specifically Stocks and Precious Metals. Sure enough, both are struggling in recent days as the Dollar breaks out. At the risk of sounding like a broken record, let us reiterate – the US Dollar continues to be one of the most important charts to keep an eye on right now. Bulls want to see the Dollar resume its downtrend. However, if the Dollar continues to mean revert higher in the near-term, it could suggest further pain for Stocks and Precious Metals.
Quote of the Day
“The market is a pendulum that forever swings between unsustainable optimism and unjustified pessimism. The intelligent investor is a realist who sells to optimists and buys from pessimists.”
– Benjamin Graham
Nasdaq 100 Underwhelms – Bespoke
Bespoke reviews the lackluster price action in the Nasdaq 100 over the past month.
6 Months From the Low – LPL Financial Research
Today marks six months since the March 23rd low in stocks. In this note, the team at LPL Financial compares the current recovery to similar bear market recoveries.
Mid-Week Update – Chaikin Analytics
In this video, Dan Russo shares his thoughts on the breakout in the US Dollar.
Why Investors Want 50% of Stocks Above 200-Day Moving Average – See It Market
David Keller explains why he’s closely watching the percentage of S&P 500 stocks above their 200-day moving average.
Tesla Stock Still a ‘Buy’ as Uptrend Remains Intact, Chart Watcher Says – Market Watch
Ari Wald of Oppenhiemer offers his technical perspective on Tesla, $TSLA.
Lowest close for the S&P 500 in eight weeks. Notice how the gap between the daily high and low has widened dramatically since Labor Day. pic.twitter.com/2wKvj44n3j
— Eddy Elfenbein (@EddyElfenbein) September 23, 2020
As Sep started, numerous people put out the stat that "Sep is the worst month for the market historically"
— Michael Antonelli (@BullandBaird) September 23, 2020
— Drew Wells, CMT, CIMA® (@DrewTheCharts) September 23, 2020
Bank influence on S&P continues to wane. pic.twitter.com/1l1yPSdtpn
— Strategas (@StrategasRP) September 23, 2020
The past four days have seen the biggest strengthening of the dollar versus its peers since the March turmoil, as measured by the Bloomberg dollar spot index. pic.twitter.com/l4cxj6EEE5
— Lisa Abramowicz (@lisaabramowicz1) September 23, 2020
— Sunchartist (@sunchartist) September 23, 2020
— Frances Horodelski (@fhoro) September 23, 2020
— Jason (@JasonPerz138) September 23, 2020
— PivotTrader (@pivotanalytics) September 23, 2020
Fears of a stock market crash are at a record high, according to Yale's 'crash confidence' index.
— Tracy Alloway (@tracyalloway) September 23, 2020