Daily Chart Report 📈 Monday, August 5, 2024
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Today’s Summary
Monday, August 5, 2024
Indices: Dow -2.60% | Nasdaq -2.96% | S&P 500 -3.00% | Russell 2000 -3.33%
Sectors: All 11 sectors closed lower by more than -1.5%. Industrials led, but still fell -1.74%. Technology lagged, dropping -3.33%.
Commodities: Crude Oil futures fell -0.79% to a six-month low of $72.94 per barrel. Gold futures dropped -1.03% to $2,444 per oz.
Currencies: The US Dollar Index dropped -0.53% to a four-month low of $102.68.
Crypto: Bitcoin dropped -7.10% to $54,014. Ethereum slid -9.99% to $2,420
Volatility: The Volatility Index had its second-best day ever, surging +64.93% to 38.56 – its highest close since October 2020.
Interest Rates: The US 10-year Treasury yield was unchanged at 3.792%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
$Vix printed 3rd highest level today since 1990. The Great Financial Crisis in 2008 and the 2020 Covid Pandemic are the only 2 times higher in 34 years. This is indeed how bottoms form but as always bottoms are processes. pic.twitter.com/94EkfVUmXk
— Roy Mattox (@RoyLMattox) August 5, 2024
Today’s Chart of the Day was shared by Roy Mattox (@RoyLMattox).
- The Volatility Index ($VIX) had its second-biggest day in history today, surging +64.93%.
- Roy points out that it reached 65.73 today—its third-highest level ever. However, it pulled back 27 points or -41% from its intraday high to close at 38.56. The $VIX has never closed further below its intraday high.
- The $VIX has only been higher than today during the Great Financial Crisis and the Pandemic. Despite today’s historic move, the S&P 500 is less than -10% off a record high. This smells like capitulation, but as Roy notes, bottoms are usually more of a process than an event.
The Takeaway: The Volatility Index ($VIX) exploded to its third-highest reading in history today. However, it closed significantly off its intraday peak. The S&P 500 is probably nearing a short-term bottom, but turbulence is likely.
Quote of the Day
“I would like to see more volatility in the markets. Small shocks remind us that a bigger shock might occur. And, we protect ourselves to some extent.”
– Myron Scholes
Top Links
Chaos is Normal – Carson Research
Ryan Detrick puts the recent correction into perspective.
Defense Outperforms – Bespoke
Bespoke points out that Aerospace & Defense stocks have been relatively strong lately.
VIX Hits 50 – Where’s the Support? – All Star Charts
JC Parets offers his perspective on the current market environment.
A View from the Floor with Jay Woods, CMT – Freedom Capital Markets
Jay Woods highlights a few noteworthy developments to watch this week.
Fast Money – The Rotation Report
Aaron Jackson shares his thoughts on the recent volatility
Top Tweets
The S&P 500 just had its largest single day drop since September 2022
Final heat map of the S&P 500’s $SPY performance from today pic.twitter.com/mIczKuZB26
— Evan (@StockMKTNewz) August 5, 2024
S&P 500 $SPX declined 3% for the first time since September 13, 2022 pic.twitter.com/vrL05c4xeH
— Barchart (@Barchart) August 5, 2024
$SPX – The low for the week is in. The next 17-18 day high is due on August 8/9. The minimal target should be a gap fill at 5302. If it makes a lower low next week it may fill the gap from May at 5073. The drawdown has reached 9.74%. The lamest drawdown ever for a VIX peak at 65. pic.twitter.com/SraZP5LZv8
— CyclesFan (@CyclesFan) August 5, 2024
Since the October’22 low:
The $SPX has had five separate rallies.
Each rally has faded after hitting the pattern’s upper line.
— Frank Cappelleri (@FrankCappelleri) August 5, 2024
The $VIX spiked 65% higher today, the 2nd largest 1-day % increase in history (note: $VIX data goes back to 1990).https://t.co/l5IYmkf6Ih pic.twitter.com/1Xk9IsXnQB
— Charlie Bilello (@charliebilello) August 5, 2024
Historic day in volatility
Difference between the VIX’s intra-day high (65) and close (38) was the highest EVER. pic.twitter.com/NHyzFqiDSH
— 3Fourteen Research (@3F_Research) August 5, 2024
This has to be one of the smallest drawdowns in the equal weighted index relative to the $VIX print ever.
Obviously it reflects more on where the buildup was (AI, Crypto etc) but still unique moment overall.$RSP $ES_F pic.twitter.com/YeTtzfrFCD
— Arun S. Chopra CFA CMT
(@FusionptCapital) August 5, 2024
Even with the selloff, $NVDA has added $1.4 trillion in market cap over the last year.
Meanwhile, Bitcoin’s total market cap $1 trillion.
So in other words, Nvidia has created more wealth for investors in just one year than Bitcoin has in 15 years. pic.twitter.com/aVqywYlOkD
— Joe Weisenthal (@TheStalwart) August 5, 2024
The Nikkei’s 12.4% decline today was the 2nd largest in its history, trailing only the 14.9% fall during the October 1987 crash. What happened in the year after the 1987 crash? The Nikkei 225 rose 26.5%. Those who embraced panic were rewarded.
Video: https://t.co/zOOTICJE0e pic.twitter.com/TSnlHz529B
— Charlie Bilello (@charliebilello) August 6, 2024
In the span of three trading days, the entirety of Japan’s 2024 gains were wiped out and trading volumes were the highest in nearly a decade. pic.twitter.com/ecwGvgRl8M
— Liz Young Thomas (@LizThomasStrat) August 5, 2024
This is the worst 3-day crash for Japan’s stock market in data back to 1973. After the prior crashes, the median subsequent 12-month return was 10.9% and the average was 14.6%. This includes the miserable 1990 experience, when Japan’s bubble was bursting. pic.twitter.com/FQyW5lLSod
— Jeff Weniger (@JeffWeniger) August 5, 2024
BREAKING:
Japan’s Nikkei Index triggers another circuit breaker, this time to the upside.
pic.twitter.com/qUhDSrBaPF
— TrendSpider (@TrendSpider) August 6, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Monday, August 5, 2024 appeared first on The Chart Report.
