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Today’s Summary
Friday, January 28th, 2022
Indices: Dow +1.65% | S&P 500 +2.43% | Nasdaq +3.13% | Russell 2000 +1.93%
Sectors: 10 of the 11 sectors closed higher. Tech led, jumping 4.37%. Energy was the only sector that closed lower, falling 0.42%.
Commodities: Crude Oil futures inched higher by 0.24% to $86.82 per barrel. Gold futures fell 0.36% to $1,787 per ounce.
Currencies: The US Dollar Index was flat.
Interest Rates: The US 10-year Treasury yield fell to 1.773%
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
S&P 500 right back to the 200 day. Wrong side of it – but it’s something. pic.twitter.com/e0HpB2yvPu
— Jay Woods (@JayWoods3) January 28, 2022
Today’s Chart of the Day was shared by Jay Woods (@JayWoods3). It’s a daily candlestick chart of the S&P 500 over the past year. Despite all the volatility this week, the S&P 500 actually managed to close slightly higher on the week by 0.77%. Jay points out that we closed a hair below the 200-day moving average. We broke below it last Friday, and couldn’t close above it all week. Contrary to popular belief, the S&P 500 has performed quite well after breaking the 200-day moving average in the past. According to Schaeffer’s Investment Research, the S&P 500 has broken below its 200-day moving average 34 times since 1990. One month later, the index has historically been higher 74% of the time for an average gain of 1.80%. Check out the full backtest results here.
Quote of the Day
“I’m not predicting, I’m observing.”
– George Soros
Top Links
What Do the Charts Say About This Correction? | 5 Charts – LPL Financial Research
In this quick video, Ryan Detrick and Scott Brown highlight five noteworthy charts to keep an eye on.
DJIA & NASDAQ up 78.3% of the Time on Feb’s 1st Day Last 23 Years – Almanac Trader
Seasonality expert, Jeff Hirsch examines how the major indices have historically performed on the first trading day in February (Tuesday).
Stock Market Analysis January 28th, 2022 – AlphaTrends
Brian Shannon breaks down this week’s price action and lays out a few key levels to keep an eye on next week.
Very Subtle Signs of Life – Potomac Fund Management
Dan Russo takes a look at a few important risk ratios.
State of the Markets – All Star Charts
JC Parets gives an in-depth analysis of the current market environment.
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Top Tweets
Nasdaq trades in a 7% range and finished unchanged on the week. LOL
— Bespoke (@bespokeinvest) January 28, 2022
Rangebound. $SPX pic.twitter.com/sYdkfiVmPL
— Frank Cappelleri (@FrankCappelleri) January 28, 2022
Hammers on Weekly charts all over the place… pic.twitter.com/WLMXiEtCKw
— Sean McLaughlin, NLD 📈 (@chicagosean) January 28, 2022
Weekly $SPX update: a bit of stabilization near the 40wk EMA. Next couple of weeks we'll see if any damage is done to longer term trend. pic.twitter.com/oYYvfjWZP7
— Michael Turvey (@MikeTurvey_TDA) January 28, 2022
I'm splitting hairs here but the S&P 500 still hasn't technically closed in correction territory yet
Considering all of the carnage in tech stocks this is a relatively mild sell-off in large cap stocks pic.twitter.com/RDmTX73tr1
— Ben Carlson (@awealthofcs) January 28, 2022
Food for thought on this Friday afternoon:
The average S&P 500 bull market correction has been -14% throughout history. Over the next 12 months, the index averaged gains of 17.7% and was negative in only one circumstance.
Corrections are uncomfortable, but also normal. pic.twitter.com/9wVjqRTyQV
— Sarah Ponczek (@SarahPonczek) January 28, 2022
SPX breaking below 200DMA after being above previous 20 days tends to deliver opportunity
🔹1-month after break $SPX avg. 1.8% gain w/74%
returns positive
🔹3 months after signal SPX outperforms avg.
anytime return w/7.03% gain as opposed to 4.75%@schaeffers $SPY pic.twitter.com/Z5rTCKc4JR
— Seth Golden (@SethCL) January 28, 2022
$VIX weekly candle. Nice. pic.twitter.com/QeUSDPKQoj
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) January 28, 2022
If we get back above those October lows, I think we might just see that rotation back into Tech on the back of solid $AAPL and $MSFT earnings. $QQQ $XLK pic.twitter.com/gjMtl11TqM
— Sam McCallum 🏴 (@honeystocks1) January 28, 2022
Support, meet Resistance. Resistance, Support.$AAPL 🐂 pic.twitter.com/wZhopAhh9b
— Grayson Roze (@GraysonRoze) January 28, 2022
$AAPL vs $SPX
Apple vs S&P 500 going out at a new relative high. pic.twitter.com/WRT6RRQL1E— Pratty (@PrattyCharts) January 28, 2022
You’re all caught up now. Thanks for reading!
