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Today’s Summary
Friday, January 20th, 2023
Indices: Nasdaq 100 +2.86% | S&P 500 +1.89% | Russell 2000 +1.69% | Dow +1.00%
Sectors: All 11 sectors closed higher. Communications led, gaining +3.13%. Health Care lagged but still rose +0.50%.
Commodities: Crude Oil futures moved higher by +1.28% to $81.64 per barrel. Gold futures rose +0.22% to an eight-month high of $1,928 per ounce.
Currencies: The US Dollar Index inched lower by -0.06% to a seven-month low of $101.99.
Crypto: Bitcoin jumped +7.51% to a five-month high of $22,674. Ethereum rose +6.86% to a four-month high of $1,660.
Interest Rates: The US 10-year Treasury yield rose to 3.484%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
#ES_F, 1d
Bearish vs Bullish view pic.twitter.com/9JtXlNXTbX
— Yuriy Matso (@yuriymatso) January 20, 2023
Today’s Chart of the Day was shared by Yuriy Matso (@yuriymatso). The S&P 500 fell -0.66% this week, marking its first down week of the new year. It spent the majority of the week chopping between its rising 50-day moving average, and its falling 200-day moving average. Yuriy points out that the index has coiled into a tight triangle pattern, with rising support and falling resistance. This consolidation pattern suggests the S&P 500 is gearing up for a strong move in either direction. As we approach the apex of this triangle, the potential is building for a strong resolution out of this pattern. A close above 4100 would confirm a breakout to the upside, while a close below 3800 would confirm a breakout to the downside. Keep an eye on how this pattern resolves in the coming days/weeks.
Quote of the Day
“The world is changed by your example, not by your opinion.”
– Paul Coelho
Trendlines > Headlines
Your favorite technical analysis show is back!
In this week’s episode of Trendlines over Headlines, Jay Woods joins us from the NYSE to help us make sense of the current market environment. Jay is a former Executive Floor Governor at the NYSE, and he currently serves on the board of the CMT Association. We discuss recent price action, the slowdown in the IPO market, next week’s earnings, and more. Enjoy!
You can also listen to the podcast version here.
Top Links
Not So Fast… – Trading Adventures
Andrew Moss breaks down some of the key technical developments from this past week.
The Prior Cycle’s High’s – All Star Charts
JC Parets points out that a lot of key assets have continued to respect their prior cycle’s highs.
The Big Picture – Riverbend Investment Management
In this video, John Roethe highlights some of the noteworthy trends across the markets.
TSLA – January 20, 2023 – Bart’s Charts
James Bartelloni explains why he thinks Tesla has bottomed.
Short-Term Government Bonds Suggesting Fed Funds Peak, Says Joe Friday – Kimble Charting Solutions
Chris Kimble looks at a long-term chart of the 2-year yield vs. the Fed Funds rate.
Top Tweets
Final heat map of the S&P 500's $SPY performance from today pic.twitter.com/6C5nOK3rCO
— StockMKTNewz – Evan (@StockMKTNewz) January 20, 2023
S&P settled just above the 200 day moving average and just below the down trend line, technically its the perfect spot for every douche bag on Fintwit to attack each others position this weekend ?? pic.twitter.com/eZvR7MahI6
— James Jude (@Jimmyjude13) January 20, 2023
The S&P 500 is ping-ponging between its rising 50-day and declining 200-day Moving Averages.
It's a battle between the intermediate-term uptrend and the long-term downtrend. $SPY pic.twitter.com/WNiMp0npuJ
— Grayson Roze (@GraysonRoze) January 20, 2023
Nasdaq 100 highest since Dec 14 $NQ_F $QQQ pic.twitter.com/2wH1HUHuQE
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) January 20, 2023
Your average January for the S&P 500 tends to be a tad weak for about a week or so, before strength late in the month. pic.twitter.com/NWyt8nCThQ
— Ryan Detrick, CMT (@RyanDetrick) January 20, 2023
$RCD vs. $RHS – Highest level since May 2022.
Risk is being bought under the surface. pic.twitter.com/rnCddmns62
— Larry Thompson (@HostileCharts) January 20, 2023
Despite massive outperformance relative to S&P 500 in 2022, Energy sector’s weight in overall index is only back to where it was a few years ago pic.twitter.com/4i6bcKtvcV
— Liz Ann Sonders (@LizAnnSonders) January 20, 2023
From failed moves come fast moves in the opposite direction. Big relative reversal from Health Care now trying to find some support $XLV $SPX pic.twitter.com/P3vyu9Uecg
— Austin Harrison, CFA, CMT (@meanstoatrend) January 20, 2023
Global discord. ? pic.twitter.com/GUxTli27Id
— Mark Ungewitter (@mark_ungewitter) January 20, 2023
After 15 years of US dominance, other Developed Markets are ready for their chance to lead. $EWU $EZU $EPP pic.twitter.com/KMRjYPKY22
— Willie Delwiche, CMT, CFA (@WillieDelwiche) January 20, 2023
And the short/intermediate evidence continues to build for Europe…$EWP $EWL $EWU pic.twitter.com/eksKARqHh2
— Ian McMillan, CMT (@the_chart_life) January 20, 2023
Most of the time I like to think about what is the right conditions for _____ to move higher. #gold gathers energy in certain types of environments and we are in that environment now. Also what is it saying about rates? pic.twitter.com/QFfJcSKz4t
— Against All Odds (@JasonP138) January 20, 2023
New puzzle piece … first time in 50 years, Gold > S&P in the first 3 months off a low. Continue to like the asymmetry Gold offers for a variety of macro outcomes. @StrategasRP pic.twitter.com/5ghSWrMNgB
— Chris Verrone (@verrone_chris) January 20, 2023
High Beta / Low Vol and Bitcoin pic.twitter.com/zCcdosonVX
— J.C. Parets (@allstarcharts) January 20, 2023
Can't make this up $RIOT pic.twitter.com/VH1Tzt3LtD
— Louis Sykes (@haumicharts) January 20, 2023
You’re all caught up now. Thanks for reading!