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Today’s Summary
Monday, May 9th, 2022
Indices: Dow -1.99% | S&P 500 -3.20% | Nasdaq 100 -3.98% | Russell 2000 -4.21%
Sectors: All 11 sectors closed lower. Consumer Staples led, but still closed slightly lower by -0.04%. Energy lagged by a wide margin, dropping -8.27%.
Commodities: Crude Oil futures moved lower by -6.09% to $103.09 per barrel. Gold futures dropped -1.29% to $1,859 per ounce.
Currencies: The US Dollar Index inched higher by +0.09%.
Crypto: Bitcoin tumbled -8.62% to $31,121. Ethereum dropped -8.50% to $2,303.
Interest Rates: The US 10-year Treasury yield fell to 3.040%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$RUT Russell 2000 Index
Coming into a very important psychological level. pic.twitter.com/CiQxHvMQBd
— Shane C. Murphy, CMT (@murphycharts) May 9, 2022
Today’s Chart of the Day was shared by Shane Murphy (@MurphyCharts). It’s a daily candlestick chart of the Russell 2000 over the past four years. The Russell 2000 dropped 4.21% today, closing at its lowest level since November 2020. At this point, it’s down more than 27% from its all-time high. Shane points out that it’s approaching a major support level around 1750-1700. This level acted as resistance for two years between 2018 and 2020, so you’d expect it to offer some support here. The index is in a bear market no matter how you define it, but this would be a logical level to see at least a short-term low. If it fails to hold, that would be a major red flag.
Quote of the Day
“In bear markets, stocks return to their rightful owners.”
– J.P. Morgan
Top Links
S&P 500 at 52-Week Lows – Bespoke
Bespoke points out that the S&P 500 closed at a new 52-week low for the first time in more than two years today.
Bonds Catch a Bid – The Reformed Broker
Josh Brown offers some thoughts on the sell-off in Bonds.
A 75 Basis Point Rate Hike May Need to Come Back on the Table, Says Strategas’ Chris Verrone – CNBC
Chris Verrone of Strategas Research weighs in on the current market environment.
Expert Reveals This is the Perfect Opportunity for Investors to Buy – Fox Business News
In this clip, Andrew Thrasher shares his near-term outlook on Stocks and Bitcoin.
NASDAQ’s Weekly Losing Streak Suggests Only Modest Rebound When it Ends – Almanac Trader
Jeff Hirsch takes a look at how the Nasdaq has historically performed after five straight down weeks.
Top Tweets
Final heat map of the S&P 500's performance from today pic.twitter.com/LEUjS9sWHY
— Stock Market News (@StockMKTNewz) May 9, 2022
S&P 500 Index drops below 4,000! pic.twitter.com/2OeEsOxtbd
— jeroen blokland (@jsblokland) May 9, 2022
SPX. We are now below the April 2021 lows. Next stop 3.800? pic.twitter.com/LapcltMb0y
— Louis Spector (@EastCoastCharts) May 9, 2022
$SPX has closed down 5 weeks in a row – 1st time since 2011 and 14th since 1980. Avg performance 26 weeks after each occurrence tells us to expect 1 more down week, then slight recovery over the next 8. After 24 weeks market begins to pick up: pic.twitter.com/KBZdfZwb5u
— Optuma (@Optuma) May 9, 2022
About the only positive here is that selling has been so bad it might be exhaustive.
Over the past 60 years, there have been 12 times (besides today) when 2 out of 3 sessions saw 93% or more of volume focused on falling stocks.
11 of them witnessed a rebound. pic.twitter.com/Mak0yil4h9
— Jason Goepfert (@jasongoepfert) May 9, 2022
Always important to put things into perspective:
Nasdaq has already declined almost as much as it did during the March 2020 crash.
Back then, the Fed was all about saving the stock market and the economy.
Today, it's all about how much more they are going to hike rates. pic.twitter.com/GybLlvRvQu
— Otavio (Tavi) Costa (@TaviCosta) May 9, 2022
$IWM $RUT There it is. The Russell 2000 has retraced all the way back to the 200 week moving average. pic.twitter.com/IunOWMLSkn
— Greg Rieben (@gregrieben) May 9, 2022
SPX – Updated "Unlucky 13" — Extended recoveries after major market shocks appear to suffer major "echoing" volatility storms exactly 13 years later. pic.twitter.com/BaqCXYp8Du
— Nautilus Research (@NautilusCap) May 9, 2022
@verrone_chris and his team are amongst the best in the biz. Chris recently said (paraphrase) "in bear mkt's defensive's outperform, but still go down, and ATM we are not seeing that." 2day the large cap Value ETF ($IWD) is testing key support, below which is low volume history. pic.twitter.com/wZCi4K6HHg
— brian.joyce.nasdaq (@Nasdaqbjoyce) May 9, 2022
Not many worse days than that for $XLE pic.twitter.com/VGLPI5BTzn
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) May 9, 2022
Gasoline futures with a bearish engulfing and potential double top? 🤞🤞 pic.twitter.com/cqQvo8N1bP
— David Rath (@DJwrath) May 9, 2022
20+ Year Treasury Bond ETF hitting levels last seen during the 2018 Christmas Eve bottom where the Fed finally capitulated — amazing retrace!
$TLT $SPY pic.twitter.com/fFqLqA0ZJZ— Matthew Timpane, CMT (@mtimpane) May 9, 2022
Bitcoin getting mighty close to $30k pic.twitter.com/ls3jkuKYWZ
— Katie Greifeld (@kgreifeld) May 9, 2022
#Bitcoin testing the range lows pic.twitter.com/Cu0lW5D7h1
— Steven Strazza (@sstrazza) May 9, 2022
You’re all caught up now. Thanks for reading!