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Today’s Summary
Tuesday, January 17th, 2023
Indices: Nasdaq 100 +0.14% | Russell 2000 -0.15% | S&P 500 -0.20% | Dow -1.14%
Sectors: 8 of the 11 Sectors closed higher. Technology led, gaining +0.45%. Materials lagged, falling -1.00%.
Commodities: Crude Oil futures rose +0.40% to $80.18 per barrel. Gold futures fell -0.61% to $1,910 per ounce.
Currencies: The US Dollar Index fell -0.17% to $102.38.
Crypto: Bitcoin inched higher by +0.28% to a four-month high of $21,250. Ethereum was unchanged and continues to trade at a two-month high of $1,578.
Interest Rates: The US 10-year Treasury yield rose to 3.553%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
i like this look on the weekly micro-caps chart… investors buying micro-caps doesn't seem like bearish behaviour… pic.twitter.com/GMPmsOfpcW
— David Cox, CMT, CFA (@DavidCoxRJ) January 17, 2023
Today’s Chart of the Day was shared by David Cox (@DavidCoxRJ). It’s a weekly candlestick chart of the Micro-Cap ETF, $IWC, over the past five years. $IWC rose +6.7% last week, marking the best week for Micro-Caps since they peaked nearly two years ago. David points out that Micro-Caps have decisively broken above their downtrend line. Meanwhile, Large-Caps continue to battle with their respective downtrend line. We often say Small-Caps tend to lead the broader market higher or lower, and that’s even more true of Micro-Cap stocks. These are companies with less than $300m in market cap, so they tend to be risker and higher beta. After dropping as much as 35% last year, Micro-Caps are still down about 26%. However, this is an encouraging development for the bulls. Will the S&P 500 follow suit?
Quote of the Day
“Race cars are neither beautiful nor ugly.
They become beautiful when they win.”
– Enzo Ferrari
Top Links
An Unprecedented Breadth Trifecta has Triggered – Quantifiable Edges
Rob Hanna points out that three different breadth thrust signals were triggered last week.
The Four Scenarios for the S&P 500 – StockCharts.com
David Keller outlines potential paths for the S&P 500 to take in the coming months.
New Bull Market?…Close But No Cigar Yet – Trend Friend
Victor Riesco highlights a few things that would confirm the start of a new bull market.
A Dead-Stick Dollar is Good News for Stocks – All Star Charts
Ian Culley examines how the S&P 500 has historically performed after a death cross in the US Dollar Index.
Better Beneath the Surface – Grindstone Intelligence
Austin Harrison takes a look at the outperformance from equally-weighted sectors and indices.
Top Tweets
Final heat map of the S&P 500's $SPY performance from today pic.twitter.com/k7KbUqlkPQ
— StockMKTNewz – Evan (@StockMKTNewz) January 17, 2023
Here is a question for the CMTs on Twitterville. @CMTAssociation
Only replies from CMTs will be considered.
Do you consider the pattern in S&Ps to be a legit inverted H&S?
If yes, cite reasons.
If no, cite reasons. pic.twitter.com/MsiVzZxl2n— Peter Brandt (@PeterLBrandt) January 17, 2023
#NQ_F, 1d
Nasdaq continues to be the weakest of 4 indices. It might be forming a bearish Head and Shoulders continuation pattern. Will be confirmed if NQ drops below 10700. pic.twitter.com/hVG9sDi3SQ
— Yuriy Matso (@yuriymatso) January 17, 2023
Broken rate of trend, above the 200d MA, but a big horizontal level here at ~1900 for the Russell 2000. Above this, I think that opens up a lot of 'breathing room' from a technical perspective…$RUT $IWM $RTY_F pic.twitter.com/vltItPVB68
— Ian McMillan, CMT (@the_chart_life) January 17, 2023
I bet almost no one is watching this trendline. ?$SPX $SPY pic.twitter.com/jo8dMp5fKH
— Greg Rieben (@gregrieben) January 17, 2023
Breadth flashing overbought here as we face the VERY well-defined S&P 500 downtrend. But hey, the Fed's gonna cut rates later this year, China is open, its a post mid-term year, and I found a penny! pic.twitter.com/IFvbSC9VTX
— Brett Villaume, CMT, CAIA (@brettvillaume) January 17, 2023
Stocks that are heavily shorted (basket tracked by @GoldmanSachs) surged 15.7% last week, most for a week since April 2020
[Past performance is no guarantee of future results] pic.twitter.com/EcFmFwm2Zf— Liz Ann Sonders (@LizAnnSonders) January 17, 2023
oops! pic.twitter.com/R0PePetUGN
— J.C. Parets (@allstarcharts) January 17, 2023
BofA’s latest Fund Manager Survey: Investors are the most underweight on US equities since 2005 pic.twitter.com/V1Hq4oYBUi
— Jessica Menton (@JessicaMenton) January 17, 2023
These three tend to move together. So, what do the new all-time highs in Caterpillar suggest for emerging markets and copper? pic.twitter.com/IgzzyXYgT6
— Alfonso Depablos (@AlfCharts) January 17, 2023
Global stocks are having their best start to the year in at least 30 years (and one of their best years relative to US stocks so far)? pic.twitter.com/uDLNGRQShj
— Callie Cox (@callieabost) January 17, 2023
What if I told you the UK FTSE was trading at a new All Time High. Would you believe me? pic.twitter.com/NHCRy5jI0K
— Michael Antonelli (@BullandBaird) January 17, 2023
You’re all caught up now. Thanks for reading!