Wednesday, April 17th, 2019
Indices: US stocks closed lower with the Dow Jones Industrial Average falling 3 points or 0.01%. The small-cap Russell 2000 was the laggard among the major indices, falling 0.95%.
Sectors: Technology led, gaining 0.57%. Healthcare lagged falling 2.89%.
Commodities: WTI Crude Oil futures fell 0.47% to settle at $63.75. Gold Futures were unchanged and continue to trade around $1,277 per ounce.
Currencies: The US Dollar Index was flat, changing by just 0.04%.
Interest Rates: The US 10-year Treasury yield moved higher to 2.592%.
Here are some of the best charts, articles, and ideas being shared on the web today!
Today’s chart of the day was shared in a blog post from Chris Kimble. It’s a long-term line chart of the S&P 500 showing the Fibonacci extension lines from the 2008 decline. In Fibonacci Analysis, 161.8% and 261.8% are important ratios that represent key levels. Kimble points out that when the S&P ran into the 161.8% extension in 2016 it took 20 months to build a base before blasting off. The S&P is now testing its next key Fibonacci level, the 261.8% extension. Price is forming a base at this level similar to the base it formed in 2016 at the 161.8% extension. Kimble thinks this base could act as a springboard sending the market higher if the S&P breaks out above the 261.8% Fibonacci extension.
Quote of The Day
“Instead of asking ‘are you sure?’ Try asking, ‘how sure are you?’ “
“‘How sure are you?’ allows for shades of gray. It says uncertainty is okay.”
– Annie Duke (Professional Poker Player)
The Bloodbath in Healthcare – The Chart Report
Healthcare has been the worst performing S&P 500 sector by far this year. This piece from the Chart Report takes a look at the sector and what some of the top-technicians are saying about it.
US Dollars are Steering the Ship – All Star Charts
One theme JC Parets has been vocal about all year is the US Dollar and how it will affect stocks as an asset class. In this piece, he updates readers on what the charts are telling him.
Fibonacci Analysis & Best Practices – Tarek Saab
Here’s a nice introduction to Fibonacci analysis from Tarek Saab. He explains how traders and analysts use Fibonacci tools to identify important price levels.
Are We Looking at a Wedge in The Making? – StockCharts.com
In this post, Julius de Kempenaer points out that a rising wedge pattern is forming in the daily chart of the S&P 500.
Fourth Best Start on Record in Junk Bond Market – Bespoke
Bespoke put out this short note today discussing the strong start to the year that High Yield Bonds have had in 2019.
Top 10 Tweets
Nasdaq/SPX ratio back at last year’s highs pic.twitter.com/GgbhZ2PXyp
— Igor Schatz (@Copernicus2013) April 17, 2019
— Nargis (@nargis007) April 17, 2019
— Yuriy Matso (@yuriymatso) April 17, 2019
$TNX US 10yr Treasury yields now up above 2.605 which breaks the downtrend from late last Year- as Stocks and bonds have now begun to decouple again from moving in tandem- Financials have been the definite beneficiary of this & the top performer over last 5 days pic.twitter.com/T9b92VFS18
— Mark Newton (@MarkNewtonCMT) April 17, 2019
— John Kicklighter (@JohnKicklighter) April 17, 2019
— Charlie Bilello (@charliebilello) April 17, 2019
Should we care at all that stocks are running into a historic level of interest relative to commodities? This is the S&P500 vs CRB Index ratio hitting the 161.8% extension of the entire 1998-2008 decline. Thoughts? $SPX $SPY $CRB $USO $CL_F $GC_F $GLD pic.twitter.com/hRrZd32wg6
— J.C. Parets (@allstarcharts) April 17, 2019
— Trader's Toolbox (@kkernttb) April 17, 2019
— Chris Kimble (@KimbleCharting) April 17, 2019