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Todayβs Summary
Friday, May 12, 2023
Indices: Dow -0.03% | S&P 500 -0.16% | Russell 2000 -0.22% | Nasdaq -0.37%
Sectors: 7 of the 11 sectors closed higher. Utilities led, gaining +0.55%. Consumer Discretionary lagged, falling -0.85%.
Commodities: Crude Oil futures fell -1.17% to $70.04 per barrel. Gold futures were unchanged and continue to trade around $2,020 per oz.
Currencies: The US Dollar Index rose +0.63% to $102.71.
Crypto: Bitcoin fell -0.71% to $26,800. Ethereum rose +0.82% to $1,811.
Interest Rates: The US 10-year Treasury yield rose to 3.470%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$DXY US Dollar Index 1D
Best week since Sept 2022, trading above the 50-day moving average with RSI > 50. 105 remains an important S/R zone. pic.twitter.com/i0YRQNVr2K
— Shane C. Murphy (@murphycharts) May 12, 2023
Todayβs Chart of the Day was shared by Shane Murphy (@murphycharts). The US Dollar Index ($DXY) is back in the spotlight after having its best week since it peaked in September. Shane points out that itβs back above the 50-day moving average, which has been a good proxy for the intermediate-term trend. It has also formed a bullish momentum divergence, with RSI failing to reach oversold conditions (below 30). If the Dollar continues higher, it will likely put pressure on risk assets like Stocks, Gold, and Crypto. Keep an eye on $103 and $105 over the next few weeks. $103 is an important long-term level as it represents the 2016/2020 highs, while $105 has been a key inflection point more recently.
Quote of the Day
βRisk is good. Not properly managing your risk is a dangerous leap.β
β Evel Knievel
Trendlines > Headlines
The latest episode of Trendlines over Headlines is out!
This week, Todd Sohn of Strategas Research joins us to make sense of the markets. We discuss the narrow leadership in the S&P 500, Energy Stocks, Banks, Gold, and more!
Top Links
Tides Turning Toward International Stocks β LPL Financial Research
Adam Turnquist examines the outlook for international stocks.
May Monthly OPEX Week Weak β DJIA Down 12 of Last 14 β Almanac Trader
Jeff Hirsch points out that the week of May options expiration (next week) has been down in recent years.
Dr. Copper Breaks to Fresh 6-Month Lows β All Star Charts
Ian Culley highlights the recent weakness in Copper.
Itβs All Relative | Who Charted β Research by Potomac
In this video, Dan Russo and Manish Khatta break down some of the most noteworthy charts to keep an eye on right now.
The Biggest Asset Bubble in History β A Wealth of Common Sense
Ben Carlson looks at the speculative bubble in Japanese equities in the β80s.
Top Tweets
The S&P 500 fell 0.3% this week–its sixth consecutive week of moves less than 1%
That's the longest streak since *2019*–Dow Jones Market Data
— Gunjan Banerji (@GunjanJS) May 12, 2023
43 days in a 3% trading range π€ͺ $SPY pic.twitter.com/JTMaVBE0mU
— ChartingCycles (@ChartingCycles) May 12, 2023
For the third time this quarter, we went an entire week without a 1% daily swing on the S&P 500.
Over the preceding 5 quarters combined, that happened only once. pic.twitter.com/vPTYI9yDaM
— Willie Delwiche, CMT, CFA (@WillieDelwiche) May 12, 2023
$SPX – "Hey siri, show me a chart that makes people go bald" pic.twitter.com/eGFfWG5Cbl
— Larry Thompson (@HostileCharts) May 12, 2023
When leadership is confined to a handful of blue-chip names it creates negative divergences in the advance-decline line: pic.twitter.com/JYBKq9mGvO
— Walter Deemer (@WalterDeemer) May 12, 2023
Mind the Gap.
At this point in the year, the Dow has never underperformed the S&P 500 by a wider margin on a YTD basis. https://t.co/s7vDyA6ayt pic.twitter.com/EbIe3hE0cC
— Bespoke (@bespokeinvest) May 12, 2023
Just 2 of 11 S&P sectors finished up on the week:
βοΈ Comm. Services $XLC +2.37%
βοΈ Discretionary $XLY +0.43%Utilities $XLU finished flat. Staples $XLP and Technology $XLK finished lower but still managed to outpace the S&P 500's -0.25% drop.
Aaaand Energy $XLE lags, -2.13% βοΈ pic.twitter.com/xv8RtSscEQ
— Grayson Roze (@GraysonRoze) May 12, 2023
The KBW Regional Banking index of stocks is at the lowest value since Nov. 2020. pic.twitter.com/cWQLYFe3Zi
— Lisa Abramowicz (@lisaabramowicz1) May 12, 2023
Already lost the banks, and now commodity stocks are showing cracks as downside participation expands to other cyclical groups $XME $XES pic.twitter.com/O3ijQLDPeS
— Steven Strazza (@sstrazza) May 12, 2023
$UUP dollar bullish engulfing the prior 6 weeks pic.twitter.com/TiBu9pNs5e
— Mike Zaccardi, CFA, CMT π (@MikeZaccardi) May 12, 2023
Yo, Charts – what would you say if you knew the Topix was 1% away from its highest level since Aug 1990? pic.twitter.com/iW6TI9wVb3
— da Chart Life (@daChartLife) May 12, 2023
Egg prices down so much even vegans started eating them pic.twitter.com/sVRj0IlPPm
— Ramp Capital Guy (@RampCapitalLLC) May 12, 2023