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Today’s Summary
Friday, October 30th, 2020
Indices: US Stocks ended the week on a sour note, with the Dow Jones Industrial Average falling 158 points or 0.59%. The S&P 500 and Nasdaq dropped 1.21% and 2.45%, respectively. The Russell 2000 closed lower by 1.48%.
Sectors: 9 of the 11 sectors closed lower. Energy led, rising 0.56%. Tech lagged, dropping 2.21%.
Commodities: Crude Oil futures fell 1.05% to a five-month low of $35.79 per barrel. Gold futures rose 0.64% to $1,880 per ounce.
Currencies: The US Dollar Index inched lower by just 0.05%.
Interest Rates: The 10-year US Treasury yield moved higher to 0.875%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The S&P 500 just had its worst week since March, closing down -5.64%.
We did get a little bounce right at the February 24th gap and horizontal support area in the last 15 minutes, so next week should be interesting. $SPX $SPY pic.twitter.com/h3MpHQRfxH— Matthew Timpane, CMT (@mtimpane) October 30, 2020
Today’s Chart of the Day was shared on Twitter by Matthew Timpane (@mtimpane). As Matthew points out, the S&P 500 dropped 5.64% this week, booking its worst week since March. We got a small bounce at the end of today’s session with the index closing 1% above its intraday low, but still down over 1% on the day. Bulls will be watching the 3200 like a hawk next week. This level has acted as a key inflection point several times this year. If price fails to hold above it, traders will be looking to the 200-day moving average as the next line of defense, which is about 4% lower from here. As we know, many are anticipating next week to be a volatile one. What can you do to prepare? Have a plan — 1.) Know your timeframe 2.) Outline the levels your willing to buy or sell at and adhere to them.
Quote of the Day
“There are known unknowns. That is to say, we know there are some things we do not know. But there are also unknown unknowns, the ones we don’t know we don’t know.”
– Donald Rumsfeld
Top Links
Are the S&P 500 Index and Crude Oil Peaking Together Again? – Kimble Charting Solutions
Chris Kimble takes a look at the relationship between the S&P 500 and Crude Oil futures.
Where Do We (Investors) Stand – David Cox
Portfolio Manager, David Cox highlights of few of the charts and indicators that he’s watching heading into next week.
Broad Selling Pressure, but Not Enough to Tip the Scales – StockCharts.com
Arthur Hill checks up on market breadth amid the recent pullback.
Technical Analysis Radio Interviews: Hedge Fund Manager, Mark Dow – Technical Analysis Radio
In this podcast, JC Parets and Mark Dow discuss behavioral finance and the current macro environment.
Energy is the Worst Sector, Ever – SentimenTrader
Jason Goepfert points out that the Energy sector has underperformed the broader market by a wider margin than any other sector has in the past ~100 years.
Top Tweets
The S&P 500 closed down more than 1% today, yet it was more than 1% above its low.
— Eddy Elfenbein (@EddyElfenbein) October 30, 2020
There is a greater likelihood of the market making a bounce if it takes out the prior low first. Uneducated stops typically reside under that level, need to flush those to remove all emotional supply before a turn can hold$SPY pic.twitter.com/2zv9laQsdw
— Brian Shannon, CMT (@alphatrends) October 30, 2020
a lot of similarities with the ’16 pre-election run-up with the market weak. in 2016, the market made a low on the Friday pre-election and bottomed on Monday. 2016 $SPX (left-side) vs. 2020 $SPX (right-side) – discussed in the webinar pic.twitter.com/0igZeYzmsy
— David Cox, CMT, CFA (@DavidCoxWG) October 30, 2020
S&P 500 information technology index took out its September low, now down 13% from a record pic.twitter.com/qV2a9TKGAf
— Sarah Ponczek (@SarahPonczek) October 30, 2020
This is getting dangerously close to @DKellerCMT's key 50% level. (It's Chart 10.07 on my public StockCharts list: https://t.co/dTidkse4Du) pic.twitter.com/ipnxpoqtJj
— Walter Deemer (@WalterDeemer) October 30, 2020
Yet another week in the books without the $VIX anywhere remotely near sub-20 levels.
Since first spiking on February 24th, the $VIX has remained above 20 for 176 straight sessions, averaging 33.53
And to think, a whole generation a @TikTokInvestors has never seen sub-20 $VIX ? pic.twitter.com/PWKCJVaD52
— Grayson Roze (@GraysonRoze) October 30, 2020
$EEM vs. $SPY emerging markets gaining relative strength pic.twitter.com/bEEiz6jFjh
— Gregory Krupinski (@G_krupins) October 30, 2020
$CL_F Crude Oil pic.twitter.com/cHl6DUuhI2
— Ian McMillan, CMT (@the_chart_life) October 30, 2020
As U.S. stocks cap their worst week since March, Treasury yields are approaching their highest level since June. pic.twitter.com/arYsG8aCKS
— Lisa Abramowicz (@lisaabramowicz1) October 30, 2020
Again no diversification benefit from US Treasuries. Bond #yields up, #equities down. pic.twitter.com/zWgFCSeJFr
— jeroen blokland (@jsblokland) October 30, 2020
Banks, Bitcoin, Utilities and Volatility – October’s top performers.
Who nailed all 4? $KRE $XLU $VIX $BTC
— Frank Cappelleri (@FrankCappelleri) October 30, 2020