Friday, October 18th, 2019
Indices: US stocks closed lower in today’s session with the Dow Jones Industrial Average falling 256 points or 0.95%. The S&P 500 and Nasdaq fell 0.39% and 0.83%, respectively.
Sectors: Real Estate led, gaining 0.96%. Communications lagged, falling 1.16%.
Commodities: Crude Oil futures were slight lower 0.11% to $53.84 per barrel. Gold futures slipped 0.28% to $1,494 per ounce.
Currencies: The US Dollar Index dropped 0.48%.
Interest Rates: The US 10-year Treasury yield moved slightly lower to 1.754%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
This rally in the dollar $DXY over the past year has been incredibly weak. We've now set 7 small and failed higher highs, this is usually a sign to look lower, even after the recent dip. The macro case to be bullish DXY is well known, but price suggests a deeper washout is ahead pic.twitter.com/1WcvErMulJ
— Adam Mancini (@AdamMancini4) October 18, 2019
Today’s Chart of the Day was shared on Twitter by Adam Mancini (@AdamMancini4). It’s a weekly candlestick chart of the US Dollar Index ($DXY). The index measures the value of the Dollar relative to a basket of six foreign currencies. $DXY has been weak lately despite closing at a two-year high just a few weeks ago, on October 1st. Today, it fell for the fourth day in a row and closed at its lowest level since August. Adam points out that the rally over the past year has been “incredibly weak.” You can see that price made a series of seven marginally higher-highs while RSI was putting in a series of lower-highs, establishing a bearish momentum divergence. Adam adds: “A washout to channel support is becoming likely to reset sentiment. A break of the center dashed trendline would be the trigger.”
Quote of The Day
Global Equity Indexes are Ready to Breakout – The Chart Report
In this week’s Chart of the Week column, we take a look at Global Equity indexes, including the MSCI All-Country World Index ($ACWI), and the S&P Global 100 ($IOO).
Seasonal Strength Well-Advertised – Look for Confirmation – RW Baird
Willie Delwiche of Baird shares his market commentary on seasonality, small-caps, Copper, and more.
Stock Market Video Analysis Week Ending 10/18/19 – AlphaTrends.net
Here’s Brian Shannon’s weekly video, where he recaps this past week and shares some interesting charts to keep an eye on for next week.
Rydex Bears Come Out of Hibernation – Dana Lyons
Dana Lyons points out that assets in Rydex bear mutual funds spiked by a record amount this week, and he explains why this could be a contrarian signal.
Beware of Hype! Know What’s Behind the Curtain – StockCharts
Erin Swenlin and Mary Ellen McGonagle discuss how to identify excessive bullish sentiment or “hype” on a chart.
Top 10 Tweets
The short and long-term story for $SPX centers on being stuck.
For the former, we've been stuck between ~2,800-3,000 for ~5+ months now.
Why's this important? Because prolonged periods of range compression precede meaningful range expansion.
See BBWidth on the weekly (1/2) pic.twitter.com/V8ZjaR2HXy
— Steve Deppe, CMT (@SJD10304) October 18, 2019
S&P 500 stocks also found buying support recently near relevant levels in 2016, 2018, and earlier in 2019. Top portion of chart shows SPX Stocks > 200 EMA; bottom portion shows the S&P 500 Index. pic.twitter.com/GwgkAc50DN
— Chris Ciovacco (@CiovaccoCapital) October 18, 2019
Now let's examine the $SPX Here’s the SPX nearing an all time high but the bottom histogram is the percentage of new 52 week highs which is not expanding as the index nears the highs… just like last year around this time. pic.twitter.com/OELP0yNAe2
— Thomas Thornton (@TommyThornton) October 18, 2019
— John Kicklighter (@JohnKicklighter) October 18, 2019
Still holding Sept. 19th highs and the Oct. 11th gap up. pic.twitter.com/VJgMOXUM7l
— Ian McMillan, CMT (@the_chart_life) October 18, 2019
— Shane C. Murphy (@murphycharts) October 18, 2019
Ugly day for the dollar. BBDXY back to its lowest level since July, after hitting a 2-year high on Oct. 1 pic.twitter.com/dHPFCIqJdM
— Katherine Greifeld 🎃 (@kgreifeld) October 18, 2019
— J.C. Parets (@allstarcharts) October 17, 2019
Nice #pennant pattern formed in $ATT. Pennants, a variation of a flag pattern, are #bullish patterns. Clear flag pole then consolidation into the pennant formation. I'll stay bullish on AT&T #stock at these levels. pic.twitter.com/04vNHwDzRO
— Chad Shoop, CMT (@ChadShoopGuru) October 18, 2019
The stock market crashed 32 years ago tomorrow. The S&P 500 is about about 1,000% since the day before the crash. pic.twitter.com/rJ1Zk3rAZt
— Eddy Elfenbein (@EddyElfenbein) October 18, 2019
Saturday, October 19th – Canadian Technician’s Day
Tuesday, October 22nd – New York Chapter Meeting Featuring Sam Stovall
Thursday, October 24th – Northern Ohio Chapter Meeting Featuring JC Parets, CMT
Saturday, October 26th – Trade Ideas Summit 2019
Monday, October 28th – United Kingdom Chapter Meeting featuring Ralph Acampora, CMT
You’re all caught up now. Thanks for reading!