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Today’s Summary
Wednesday, May 18th, 2022
Indices: Russell 2000 -3.56% | Dow -3.57% | S&P 500 -4.04% | Nasdaq 100 -5.06%
Sectors: All 11 sectors closed lower. Utilities led, but still fell -0.97%. Consumer Discretionary lagged, tumbling -6.54%.
Commodities: Crude Oil futures dropped -4.92% to $106.87 per barrel. Gold futures fell -0.21% to $1,819 per ounce.
Currencies: The US Dollar Index gained +0.60%.
Crypto: Bitcoin fell -3.88% to $29,243. Ethereum dropped -5.85% to $1,966.
Interest Rates: The US 10-year Treasury yield moved lower to 2.889%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Transports are taking out a key support level as they are resolving lower from a 12-month distribution pattern. pic.twitter.com/Ha5kTZJVHm
— Alfonso Depablos (@AlfCharts) May 18, 2022
Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts). It’s a weekly candlestick chart of the Dow Jones Transportation Average over the past five years. Transports suffered their worst decline in nearly two years today and closed at a fresh 52-week low. More importantly, Alfonso points out that it sliced through crucial support around 14,000. Transports are an important bellwether for both the Stock Market and the Economy. This weakness is nothing new, but it’s gotten worse, and it continues to be a major red flag.
Quote of the Day
“I decided to let my stop loss decide.”
– Nicholas Darvas
Top Links
Six Things to Know About Bear Markets – LPL Financial Research
The team at LPL Financial Research shares some stats about bear markets.
Overwhelming Supply of Stocks – All Star Charts
JC Parets offers his outlook on the S&P 500.
Is It Finally Time to Target the S&P 500 After 6 Weeks of Losses? – Schaeffer’s Investment Research
Rocky White examines how the S&P 500 has historically performed after six consecutive down weeks.
Walmart’s Stock Decline Hits Major Price Support…Bulls Hopping So!!
Chris Kimble breaks down a chart of Walmart ($WMT) after two days of brutal selling.
Stock Market Video Analysis 5/18/22 – AlphaTrends
In this quick video, Brian Shannon analyzes recent price action and lays out some levels of interest to watch in the remainder of the week.
Top Tweets
Daily Mkt Mood: Risk-Off
Brutal selloff as worst fear of cos not being able to manage inflation came true.$SPX -4%, bonds, yen rallied as $VIX spiked.
That said, $VIX less fearful than $SPX w/ recent low intact.
Room for bounce exists/may happen but… in a bear market.
— Abigail Doolittle (@TheChartress) May 18, 2022
just your casual 4% down move in $SPX pic.twitter.com/UEmIYPVzSb
— IV (@iv_technicals) May 18, 2022
Another one of those days. YTD there have been 28 days where the S&P 500 lost at least 1%. Besides 2009, you'd have to go back to the 1930s to find a year that had this many bad ones by mid-May. Yuck. pic.twitter.com/grhY0NG8Pl
— Liz Young (@LizYoungStrat) May 18, 2022
Barring a miracle, the Nasdaq 100 is going to have its 7th consecutive weekly decline.
Only had 8 twice, October 2008 and March 2001. pic.twitter.com/kcXK5y5Gu7
— Michael Batnick (@michaelbatnick) May 18, 2022
#NQ_F, 1h
I mean… those resistance levels… pic.twitter.com/0m2ya9TAKY
— Yuriy Matso (@yuriymatso) May 18, 2022
High yield/Junk Bonds continue to crater…$JNK $HYG pic.twitter.com/kfgAXnPhgB
— Greg Rieben (@gregrieben) May 18, 2022
posts +$67M inflow, 5d inflow +$151M
see fund flows bottom of chart pic.twitter.com/eLs5NK8vWQ
— Christian Fromhertz ???? (@cfromhertz) May 18, 2022
$WMT second day of brutal selling pic.twitter.com/v0HWuiiHHk
— Jenny Horne (@J_B_Horne) May 18, 2022
Target is down 25% today which is its 2nd largest decline ever. #1 was the 33% decline during the 1987 "Black Monday" Crash. $TGT
Charting via @ycharts pic.twitter.com/sAmFhOObLK
— Charlie Bilello (@charliebilello) May 18, 2022
$DLTR had been one of the leading names on the year in $QQQ – getting taken out here with $WMT and $TGT – down 17% pic.twitter.com/IVkNrtTH0t
— Matt Petrallia, CMT (@theEquilibrium) May 18, 2022
Congrats on the quarter $TJX pic.twitter.com/YXXbX9qev3
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) May 18, 2022
You’re all caught up now. Thanks for reading!