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Today’s Summary
Tuesday, February 21st, 2023
Indices: S&P 500 -2.00% | Dow -2.06% | Nasdaq 100 -2.41% | Russell 2000 -2.99%
Sectors: All 11 sectors closed lower. Consumer Staples led, but still fell -0.38%. Consumer Discretionary lagged, dropping -3.34%.
Commodities: Crude Oil futures inched lower by -0.25% to $76.36 per barrel. Gold futures fell -0.42% to $1,843 per ounce.
Currencies: The US Dollar Index rose +0.40% to $104.17
Crypto: Bitcoin fell -1.84% to $24,386. Ethereum dropped -2.89% to $1,655.
Interest Rates: The US 10-year Treasury yield rose to a three-month high of 3.956%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$SPY and $RSP back below their December highs. pic.twitter.com/1y8QKuzpzr
— Stacey.A.Lee (@BBaxter2020) February 21, 2023
Today’s Chart of the Day was shared by Stacey Lee (@BBaxter2020). The S&P 500 dropped -2.00% today, marking its worst day so far in 2023. Stacey points out that both the S&P 500 and its equally weighted version are back below their December highs. This qualifies as a failed breakout. As we know, failed breakouts are often followed by sharp moves lower. If you’re feeling an ominous sense of Deja Vu, it’s because most of the major declines over the past year started off this way. It’s typical to see weakness in late February, but the bulls needed to defend 4100 and they couldn’t. At this point, traders are watching 3900-3950 for potential support as the S&P 500 looks to retest its 200-day moving average and downtrend line from above. A break below that level would likely bring more bears out of hibernation.
Quote of the Day
“Contrary to popular belief, winners quit a lot. In fact, that’s how they win.”
– Annie Duke
Top Links
What Happens When The Market Ends Down More Than 1% On Tuesday – Investor Charts
Petr Pinkhasov examines what has historically happened when the S&P 500 drops 1% or more after two prior consecutive down closes.
Europe Hits New 52-Week Highs – All Star Charts
JC Parets points out that several European equity markets are hitting all-time highs.
Stuck in the Middle – The Weekly Trend
In this podcast, Ian McMillan and Kevin Firari discuss some of the most important technical developments to keep an eye on.
The Real Market Leaders – Grindstone Intelligence
Austin Harrison highlights the Industrial sector and its continued relative strength.
Trendlines over Headlines – The Rebound in Technology with Doug Busch – The Chart Report
In the latest episode of Trendlines over Headlines, Doug Busch of ChartSmarter joins us to discuss the Nasdaq, Semiconductors, Software, Mid-Caps, and more!
Top Tweets
*Tuesday S&P 500 Heat Map: pic.twitter.com/nF9KGGBkO1
— Jesse Cohen (@JesseCohenInv) February 21, 2023
Worst day of the year for the S&P 500 and it was the first 2% drop since 12/15/22 (hawkish Fed induced sell off).
Not fun, but as we've been saying, the second half of February historically can be troublesome. pic.twitter.com/SnB45k4vaP
— Ryan Detrick, CMT (@RyanDetrick) February 21, 2023
That's now a clear fake break to the north, a turnover at the one, and the Bears have the Bulls in the corner now and are landing some nice shots.
Can they keep them there though? That's the question.
(Plenty of "support" not far off, just not shown on this chart). pic.twitter.com/haUglwkgQ1
— Steve Deppe, CMT (@SJD10304) February 21, 2023
Looks like consolidation, but S&P 500 uptrend and 200 DMA need to hold to prove it #StockMarket pic.twitter.com/K5aJabvVD8
— Abigail Doolittle (@TheChartress) February 21, 2023
Trendline test coming up. Will that hold?
Or, does price slice through and test the 200 day moving average?$SPY $SPX pic.twitter.com/4QkjPXYuTK
— Greg Rieben (@gregrieben) February 21, 2023
2021 neckline and 16000: rejected $NYA pic.twitter.com/pWbnwRJGEW
— Ian McMillan, CMT (@the_chart_life) February 21, 2023
Given the tight range in the Dow, we could see a very fast move out of this range. pic.twitter.com/x5nvL3ZkTu
— PetrTrades (@PetrTrades) February 21, 2023
If the advance since October 2022 is a bear-market rally, it’s a most unusual case. pic.twitter.com/NkmMxXQ7R2
— Mark Ungewitter (@mark_ungewitter) February 21, 2023
Agree 10/12 was the low??If so, outlook is strong?
– Some starting to agree that 10/12 was likely mkt low
– But say equities are "rangebound" rest of year
– Price action following Past bear market lows suggests otherwise
– Assuming 10/12 was the low, we are close to trend?
-… https://t.co/szsryAOei7 pic.twitter.com/qtcs6Xvd7t— Matt Cerminaro (@mattcerminaro) February 21, 2023
Many conflicting prophecies on economy and markets. A ?on how they could fit:
A bear market has never ended before the start of a recession. Most economists say US is not in recession but it's likely so logical conclusion is lows are not in place. Makes sense. @NDR_RESEARCH 1/9 pic.twitter.com/tOvbuIGdm4— Ed Clissold (@edclissold) February 21, 2023
10Yr T/Note Yield $TNX continues on the rampage. pic.twitter.com/nDWcN43bGG
— Sam McCallum (@Honeystocks1) February 21, 2023
GDX had gained +54.93% . However the February 2, Gap decline was confirmed when GDX broke and closed below the $30.02 level printed on February 6.
Gaps to the downside coming soon after a strong advance should never be ignored. pic.twitter.com/W7xLUHLGc5— Milton W Berg CFA (@BergMilton) February 21, 2023
I've traded and followed #natgas markets for a long time. This is one for the record books. How LOW can she go??? pic.twitter.com/WgrSFJtHj1
— Brynne Kelly (@BrynneKKelly) February 21, 2023
Market gods hear everything pic.twitter.com/QB3xg5RrYv
— Arun S. Chopra CFA CMT? (@FusionptCapital) February 21, 2023