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Today’s Summary
Tuesday, January 31st, 2023
Indices: Russell 2000 +2.45% | Nasdaq 100 +1.59% | S&P 500 +1.46% | Dow +1.09%
Sectors: All 11 sectors closed higher. Consumer Discretionary led, gaining +2.43%. Utilities lagged, falling -0.74%.
Commodities: Crude Oil futures rose +1.25% to $78.87 per barrel. Gold futures gained +0.31% to a nine-month high of $1,945 per ounce.
Currencies: The US Dollar Index inched lower by -0.15% to $102.09.
Crypto: Bitcoin rose +0.51% to $22,947. Ethereum gained +0.64% to $1,576.
Interest Rates: The US 10-year Treasury yield fell to 3.512%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Horizontal line SP cash: obviously major level…(like the whole world is watching this!) pic.twitter.com/ovP9QCJJPX
— Linda Raschke (@LindaRaschke) January 31, 2023
Today’s Chart of the Day was shared by Linda Raschke (@LindaRaschke). Linda points out that the next major hurdle for the S&P 500 is the horizontal resistance level around 4100. This level has acted as a key inflection point several times over the past year. We broke above it in August, but that breakout quickly failed, and the index swiftly dropped to new lows. We’ve had three failed attempts to reclaim it since that August failed breakout. Will the fourth time be the charm?
Quote of the Day
“It’s going to be cockroaches and Goldman Sachs
that survives the nuclear war.”
– Brian Lund
Top Links
So Goes January, So Goes the Year? – Carson Group
Ryan Detrick examines what a strong January could mean for the rest of the year.
A Broad Look at Market Breadth – Grindstone Intelligence
Austin Harrison analyzes several key breadth metrics.
Are Consumer Stocks Sending Chills to Broader Market? – Kimble Charting Solutions
Chris Kimble points out that the Consumer Discretionary/Staples ratio is testing long-term resistance.
Risk On? | Who Charted – Research by Potomac
In this quick video, Dan Russo and Drew Wells highlight six noteworthy charts in six minutes.
What Charts are you Watching – The Chart Report
Here’s the recording of our Twitter Spaces from earlier today in case you missed it!
Top Tweets
Monthly Mkt Mood: Risk-On
1. #StockMarket surges
2. Best Jan for $NDX since 2001
3. Stocks digest rising rates
4. S&P 500 >200 DMA
5. Bitcoin up ~40%Big week for big month to end in, feels like the bulls will hold the line and take control.
— Abigail Doolittle (@TheChartress) January 31, 2023
*January Monthly Performance: pic.twitter.com/RZnz2mkLGW
— Jesse Cohen (@JesseCohenInv) January 31, 2023
As goes January, so goes the year?
In 73% of years since 1950, the S&P 500 has moved in the same direction that year as it did in January (ie positive January, positive year) pic.twitter.com/HZxjEe0swM
— Callie Cox (@callieabost) January 31, 2023
The bullish slingshot is here.
Thanks to a strong last day of the month, the S&P 500 gained more than 5% in January.
Remember, a >5% gain in Jan, on the heels of a red yr the yr before, tends to be bullish.
The full yr has finished higher 5 of 5 times, up close to 30% on avg. pic.twitter.com/j0NRGOv2aZ
— Ryan Detrick, CMT (@RyanDetrick) January 31, 2023
Small cap stocks are set to close at their highest level since August $IWM
¯_(ツ)_/¯ pic.twitter.com/4zHwePgwHL
— Matt ?, CMT (@topstockcharts) January 31, 2023
Small Caps had their first overbought reading on a relative basis since… Feb 2021. Is the approach to the same neckline going to have a different outcome this time? pic.twitter.com/rlnIX9QQt4
— Pratty ★ (@PrattyCharts) January 31, 2023
EAFE: After the third best January on record (only 1975 & 1987 got off to a faster start), the index is running ahead of its 50-year average annual return. pic.twitter.com/E77QMwp8Vd
— Willie Delwiche, CMT, CFA (@WillieDelwiche) January 31, 2023
#natgas -61% last 2 months. Worst stretch ever. $UNG pic.twitter.com/VR4QfYMI55
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) January 31, 2023
Natural Gas futures are at their lowest levels since April 2021, down 74% from their peak last August. pic.twitter.com/L4m2tube1e
— Charlie Bilello (@charliebilello) January 31, 2023
Sheesh, intraday charts look like Space X decided to sponsor the last 30-minutes of today's session ? pic.twitter.com/yHnV3azhdB
— Grayson Roze (@GraysonRoze) January 31, 2023
You’re all caught up now. Thanks for reading!