10 Charts Illustrate Today's Extreme Market Conditions
Tim Knight | Jun 08, 2020 12:47AM ET
It has been 75 days since the tragic cessation of the one-month long bear market, and while the Stocks Only Go Up meme is totally saturated into the public mind space, I think the ten charts below are worth your time. I’ve said a few words about each in the caption.
Volatility has been destroyed, falling from almost 90 to the lower 20s.
the Dow Jones Composite has pushed above its long-term trendline (green) and is back to the March 3 peak which followed the initial February sell-off.
The NASDAQ has, for the moment, double-topped, matching its February high.
The Dow Utilities has tagged the horizontal beneath the Jan/Feb topping pattern.
Broker/Dealer index has sealed its last major price gap and is just beneath the lifetime high of February 19th.
Get The News You Want
The Dow 30 has increased nearly 10,000 points since late March, and has pushed above its long-term broken trendline and is approaching the underside of the intermediate trendline.
The Major Market Index is at its price gap and has returned to March 3 highs.
This weekend is a big OPEC meeting, and we’ll see if this marks the reversal beneath that multi-year mountain of overhead supply for the Oil Index.
This ratio chart of small caps versus bonds has a very well-formed reversal pattern, and we have rallied almost all the way back to its base.
Finally, and perhaps most intriguing, this ratio chart of the S&P 500 versus the 10-year interest rate is a nearly perfect channel, and we are mashed to its upper extreme.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.