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Todayâs Summary
Wednesday, January 26th, 2022
Indices: Dow -0.38% | S&P 500 -0.15% | Nasdaq +0.02% | Russell 2000 -1.38%
Sectors: 2 of the 11 sectors closed higher. Technology led, gaining 0.59%. Real Estate lagged, falling 1.66%.
Commodities: Crude Oil futures rose 2.04% to a seven-year high of $87.35 per barrel. Gold futures dropped 1.23% to $1,830 per ounce.
Currencies: The US Dollar Index gained 0.54%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.867%
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
A key way to define a bull market is the creation of higher highs and higher lows. A bull market looks like the silhouette of a staircase.
Since the COVID lows, we've unquestionably been in a bull market & have yet to make a lower low.
This trend is currently being threatened. pic.twitter.com/SS7AZJ6W04
— Caleb Franzen (@CalebFranzen) January 26, 2022
Todayâs Chart of the Day was shared by Caleb Franzen (@CalebFranzen). It’s a daily candlestick chart of the S&P 500 over the past two years. Do you know where the terms bull & bear markets come from? They refer to the way in which the two animals fight. Bulls fight with their horns plowing upwards, while bears fight with their claws slashing downwards. The media defines a bear market as a 20% decline, however, as technicians, we care more about the trend. Is it in an uptrend or a downtrend? An uptrend is defined as a series of higher highs & higher lows, while a downtrend is a series of lower highs & lower lows. We’ve been in a clear uptrend for nearly two years now making a series of higher highs and higher lows. However, Caleb points out that the uptrend is currently in jeopardy as we test the October lows around 4300. We haven’t cracked that level just yet, but a close below there would confirm that we’re no longer in an uptrend.
Quote of the Day
“Iâm a trend follower, not a trend fighter. Iâm smart enough to realize that a slap is easier to recover from than a beating.”
– Martin Zweig
Top Links
All You Wanted to Know About Stock Market Corrections – LPL Financial Research
The team at LPL Financial Research shares some helpful stats on market corrections.
Monday’s Low Provides Key Reference Point for the Bulls to Shoot Against – Potomac Fund Management
Dan Russo highlights some key takeaways from the current market.
Are Energy Stocks Suggesting Long-Term Strength? – Kimble Charting Solutions
Chris Kimble explains why the Energy sector could continue outperforming the S&P 500 over the next few months.
Stock Market Analysis January 26, 2022 – AlphaTrends
In this quick video, Brian Shanon analyzes this week’s wild price action and highlights some key levels to watch in the remainder of the week.
Brazil and Russia Go in Opposite Directions – Bespoke
Bespoke examines the trends in international markets.
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Top Tweets
Worst start to a year…ever. $SPX pic.twitter.com/gLhnACRu9T
— Teddy Vallee (@TeddyVallee) January 26, 2022
Lowest close since October 5. pic.twitter.com/tjG89GPPgf
— Eddy Elfenbein (@EddyElfenbein) January 26, 2022
A classic bear pennant in the works, ominously right below 200-day MA.
A decisive break lower generates measured move target of round, psychological 4000 level, which would represent 17% sell-off from peak.
Average intra-year decline in midterm election year: 17%. $SPY $SPX pic.twitter.com/IDjhuyzla8
— Matt đŚ, CMT (@topstockcharts) January 26, 2022
$QQQ – Does it have to be more complicated than below $350 stay away? pic.twitter.com/sP9rdtV9hP
— HostileCharts (@HostileCapital) January 26, 2022
Russell (under) 2000 $IWM pic.twitter.com/Q0LqT0UXjn
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) January 26, 2022
The $VIX close above its upper Bollinger Band for the 7th consecutive session; first time since September 2001. pic.twitter.com/ct1Jdn9Fqm
— brian.joyce.nasdaq (@Nasdaqbjoyce) January 26, 2022
— Abigail Doolittle (@TheChartress) January 26, 2022
Most important chart on my screens – 10-year yield. Former resistance turning into support at ~1.75?
$US10Y pic.twitter.com/WQgJ6Hvzst
— Pratty (@PrattyCharts) January 26, 2022
High Yield bonds breaking lower…$HYG pic.twitter.com/i6kYum7C5D
— Ian McMillan, CMT (@the_chart_life) January 26, 2022
$JNK — 4-year peak cycle update … pic.twitter.com/P9OGgDkY8j
— Nautilus Research (@NautilusCap) January 26, 2022
CHART OF THE DAY: The Bloomberg Commodity Spot index, a basket of 23 raw materials from oil to wheat and aluminium, has surged to a fresh all-time high, surpassing the peak set in October. Commodity inflation isnât transitory pic.twitter.com/aVddp429SB
— Javier Blas (@JavierBlas) January 26, 2022
Commodities vs. S&P 500
New relative highs pic.twitter.com/EQDdvlPUr8
— Adaptiv ⢠(@adaptiv) January 26, 2022
Crude oil hasn't flinched. $CL_F $XLE #commodities pic.twitter.com/jbvRagO6h9
— Ian Culley (@IanCulley) January 26, 2022
Brent crude oil prices just touched $90 for the first time since 2014. pic.twitter.com/y3XxjDTJv2
— Liz Young (@LizYoungStrat) January 26, 2022
Good idea to check all oil related commodities: WTI, Brent, Low Sulphur Gasoil, Gasoline, Heating Oil, & Jet Fuel. Theyâre always painted with the same brush. Upstrokes across the board here. pic.twitter.com/fm9op2V0aW
— da Chart Life (@daChartLife) January 26, 2022
Copper futures have been consolidating since May '21 after the strong run from the 2020 low. A chart I'm watching . pic.twitter.com/UmkPcThoyN
— Andrew Thrasher, CMT (@AndrewThrasher) January 26, 2022
Is the US Dollar $DXY getting ready to break out or will it remain range bound?
Probably a chart to keep an eye on. pic.twitter.com/4eKZYBwC74— Sam McCallum đ´ó §ó ˘ó łó Łó ´ó ż (@honeystocks1) January 26, 2022
Can they get it back above 41,000? It's not the bet I'm making, but I can't think of a more bullish catalyst for #bitcoin You think they can do it? Or do we see 30 first? pic.twitter.com/4YGUOwpRYy
— J.C. Parets (@allstarcharts) January 26, 2022
The stock market is a chart of rich peopleâs feelings⌠it doesnât care about you
— Genevieve Roch-Decter, CFA (@GRDecter) January 25, 2022
Youâre all caught up now. Thanks for reading!
