Double Digit Drops For the Major Markets Despite The Fed’s 100 Basis Point Rate Cut - Chaikin Analytics

Double Digit Drops For the Major Markets Despite The Fed’s 100 Basis Point Rate Cut

US equities closed lower on Monday, at the worst levels of the day, following the trigger of another circuit breaker right after the open. All sectors were lower on the day. Treasuries rallied across the curve. The dollar was weaker against the yen and the  euro. Gold finished down 2.0%. WTI crude ended down 9.5%, its lowest settlement since February 2016.

  • Outperformers: Communication Svcs. (6.96%), Consumer Spls. (7.03%), Healthcare (9.99%), Materials (11.44%), Industrials (11.45%), Utilities (11.54%)
  • Underperformers: REITs (16.54%), Financials (13.99%), Tech (13.91%), Energy (13.63%), Consumer Disc. (12.08%)

S&P futures are up 2.6% in volatile trading and were limit up before giving back some of the gains. Asian markets were mixed overnight. European markets are trading lower. Treasures are weaker with the curve steepening. The dollar is stronger on the major crosses. Gold is down 0.8%. WTI Crude is up 0.7%.

Key Levels To Watch – SPY

The SPDR S&P 500 Trust (SPY) remains oversold and is extended to the downside from the declining long-term trend line. Investors are closely watching the December 2018 lows for signs of stabilization. Below that, the next key level is the 2016 breakout near $210. 

Sector Power Bars

There is currently one sector with a Power Bar Ratio which is stronger than that of the SPY. There are no sectors with bullish ratios and there is only one stock in SPY that has a Bullish Power Gauge Rating.

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