Sponsored By:
Today’s Summary
Thursday, January 26th, 2023
Indices: Nasdaq 100 +2.00% | S&P 500 +1.10% | Russell 2000 +0.67% | Dow +0.61%
Sectors: 10 of the 11 sectors closed higher. Energy led, gaining +3.16%. Consumer Staples was the only sector that closed lower, falling -0.35%.
Commodities: Crude Oil futures rose +1.07% to $81.01 per barrel. Gold futures fell -0.65% to $1,930 per ounce.
Currencies: The US Dollar Index gained +0.17% to $101.82.
Crypto: Bitcoin was flat and continues to trade around $23,000. Ethereum fell -0.48% to $1,602.
Interest Rates: The US 10-year Treasury rose to 3.502%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The 200-day moving average, the anchored VWAP from all-time highs, and a downward-sloping trendline all converge in the same area, making it an important confluence of resistance for the S&P 500 $SPY pic.twitter.com/6hq3yIfIee
— Alfonso Depablos (@AlfCharts) January 26, 2023
Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts). This week, the S&P 500 ($SPY) officially reclaimed its 200-day moving average and its notorious downtrend line, after being rejected by both several times over the past year. However, Alfonso points out that the index still has some important resistance levels lurking overhead. The Anchored VWAP from the all-time highs is right around $409, which is about 1% higher from here. This AVWAP also coincides with horizontal resistance that was created by the September & December highs. It’s very constructive to see the S&P 500 back above its 200-day moving average and downtrend line. However, there is still a lot of price memory just north of here. A close above $410 would add conviction to some of the bullish developments we’ve seen recently.
Quote of the Day
“Know the crowd around the stocks you’re trading.”
– Ray Dalio
Top Links
Frank points out that it’s rare to see back-to-back moves of less than 0.10% in the S&P 500 like we’ve seen this week.
February 2023 Almanac: Historically Solid Gains in Pre-Election Years – Almanac Trader
Jeff Hirsch examines how the major indices have historically fared in February.
The Bulls Are Running – The Weekly Grind
Sam McCallum highlights a few noteworthy charts to keep an eye on.
2 Little-Known Technical Indicators From 1970s Could Predict End of Bear Market – The Street
Bruce Kamich discusses two little-known indicators that could help to confirm the start of a new bull phase.
Top Tweets
Final heat map of the S&P 500's $SPY performance from today pic.twitter.com/IyH3lJnGoc
— StockMKTNewz – Evan (@StockMKTNewz) January 26, 2023
$QQQ 4-month high pic.twitter.com/Lzup2NUMl2
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) January 26, 2023
It's starting $NDX ⚡️ pic.twitter.com/rD1EAOyu27
— Abigail Doolittle (@TheChartress) January 26, 2023
The last time I was this interested in equities was August of last year. Man, it would be great to see a buy signal! I’ve got a list, but am remaining disciplined vs front running my own defined process. That’s the hard part about all of this. Steel your mind. $IXIC weekly pic.twitter.com/kx3VWhL6RN
— Tex (@theycallmetex) January 26, 2023
Sorry trendline fanatics
It will mean absolutely nothing to me as a trade if this trendline is violated $SPY pic.twitter.com/V5LFYKdGHx
— Peter Brandt (@PeterLBrandt) January 26, 2023
…close but not yet. pic.twitter.com/7rjQtA7kQK
— Frank Cappelleri (@FrankCappelleri) January 26, 2023
Russell waiting on that push to get us above 1900…$RUT $IWM $RTY_F pic.twitter.com/fz5jhDw7wi
— Ian McMillan, CMT (@the_chart_life) January 26, 2023
Active investment managers liking what they are seeing.$SPX isn't back to its December high, let alone where it was in August, but NAAIM Exposure index has eclipsed its recent highs (& at highest since April). pic.twitter.com/Z3J6xH9LcC
— Willie Delwiche, CMT, CFA (@WillieDelwiche) January 26, 2023
Rally so far this year has been led by speculative segments of market, with non-profitable tech (purple), most shorted (white), and retail trader favorites (orange) all outperforming S&P 500 (blue)
[Past performance is no guarantee of future results] pic.twitter.com/6lE4VNGQQ0— Liz Ann Sonders (@LizAnnSonders) January 26, 2023
$XLE How about energy? Wow. pic.twitter.com/McKkg5oN9x
— David Yocum (@YocumsCharting) January 26, 2023
$UNG Weekly. Back near ATL's for this fund.
After Russia began a war 11 months ago, we've been hearing that Europe is facing an energy crisis. Since that time, $VGK is flat (but outperformed $SPY) while $UNG is down 40%.
Lesson? Always follow price. pic.twitter.com/3bqyFzLOl3
— Brian G (@alphacharts) January 26, 2023
Creating an app that shocks the crap out of you when you move a stop and fully ejects you from your chair when you triple down.
— Arun S. Chopra CFA CMT? (@FusionptCapital) January 26, 2023
You’re all caught up now. Thanks for reading!