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Today’s Summary
Thursday, May 27th, 2021
Indices: US Stocks were mostly higher in today’s session. The Dow rose 142 points or 0.41%. The S&P 500 inched up 0.12%, while the Nasdaq was unchanged (0.01%). The Russell 2000 outperformed, gaining 1.06%.
Sectors: 6 of the 11 sectors closed higher. Industrials led, rising 1.37%. Utilities lagged, falling 0.67%.
Commodities: Crude Oil futures continued higher by 0.97% to $66.85 per barrel. Gold futures inched lower by just 0.14% to $1,899 per ounce.
Currencies: The US Dollar Index was flat (0.05%).
Interest Rates: The 10-year US Treasury yield rose to 1.606%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Small caps had perfect opportunity to collapse. Now gapped up over resistance. Looks like they want to go higher now. $IWM pic.twitter.com/T3rVVJrCeW
— Andrew Adams CFA, CMT (@DayTraderGator) May 27, 2021
Today’s Chart of the Day was shared by Andrew Adams (@DayTraderGator). It’s a daily candlestick chart of the Russell 2000 ETF, $IWM, over the past nine months. The Russell 2000 has perked up over the past two sessions and is now outperforming the broader market by a decent margin this week. It has been in a consolidation phase since February. Not surprisingly, this consolidation occurred at the 1.618% Fibonacci extension of the Covid crash. The past few months have been a choppy mess but as Andrew notes, price and momentum have refused to break down in a meaningful way. We’re now firmly above the 50-day moving average, and all-time highs are less than 4% higher from here. Fresh highs would be a clear indication that this consolidation period is over, and that a new uptrend is developing.
Quote of the Day
The stock market is human nature on parade.”
– William O’Neil
Top Links
More and More Investors Are Looking For A Correction – Bespoke
Bespoke analyzes the results of the latest sentiment surveys.
Looking for Short-Term Breadth Metrics to Improve – Potomac Fund Management
Dan Russo highlights some key points about the current market environment.
One Russell 2000 Signal Could Point To a Summertime Rally, Analyst Says – CNBC
Ari Wald offers his technical perspective on the Russell 2000.
Why the Russell 2000 (IWM) Needs to Clear $222.14 – StockCharts
Mish Schneider shares her thoughts on the Russell 2000.
Bearish Or Bullish: What Systemic Risk? – All Star Charts
JC Parets and Julie Alexandria discuss some of the latest developments in Stocks and Crypto.
Top Tweets
Today was the 100th trading day of the year.
When the S&P 500 Index is up >10% YTD on day 100, the rest of the year historically does really well.
Higher 84% of the time and up another 8.6% on average, both well above what the average year does. pic.twitter.com/Kx64jDH0Yp
— Ryan Detrick, CMT (@RyanDetrick) May 27, 2021
Important strength in Growth Stocks:
One third of Nasdaq Stocks have triggered Buy signals – the most since March 2020.
Most spikes of this magnitude led to bottoms or *big* rally extensions.
A textbook Bull Market response after a sentiment capitulation – follow the Trend. pic.twitter.com/Zg8mjCojaP
— Macro Charts (@MacroCharts) May 27, 2021
Some welcome improvement #NASDAQ $QQQ @NapatreeC pic.twitter.com/qM2oPRnLrU
— Mike Moses, CMT,CMSA (@DominickMike) May 27, 2021
US small caps +3% last 5 trading days. Beating the other indexes. Good to see the Russell climb above Tuesday morning's high $IWM pic.twitter.com/O1yXy3J4kz
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) May 27, 2021
$XLF ready for another leg up? pic.twitter.com/uAOyjRL3bE
— @theEquilibrium (@theEquilibrium) May 27, 2021
this pattern in Financials better resolve higher, or this market is in a lot of trouble $XLF $SPY $DJIA pic.twitter.com/OJEHZGi5s6
— J.C. Parets (@allstarcharts) May 27, 2021
Utilities hitting their lowest relative point – against the broad market – since early March.
Can the bullish tailwind continue?$XLU pic.twitter.com/jr5ikiHuBw
— Ian McMillan, CMT (@the_chart_life) May 27, 2021
Europe, $VGK has been outperforming $SPY in the near term. It looks like this may continue into the intermediate future. pic.twitter.com/HZPQznzmwe
— Alan Cohen (@al_xdpg) May 27, 2021
As pointed out by @Economics this year’s commodity rally was driven more by speculation/risk appetite & less by demand or supply pic.twitter.com/u3bwaSAyzD
— Liz Ann Sonders (@LizAnnSonders) May 27, 2021
$URA Uranium/nuclear stocks continue to look very constructive and still under loved and underfollowed. $CCJ $NXE $DML.CA pic.twitter.com/di0m4X4wEY
— Greg Rieben (@gregrieben) May 27, 2021
probably just a coincidence…. pic.twitter.com/al9ZK5PLSd
— Brian Shannon, CMT (@alphatrends) May 27, 2021
don't say there were no signs https://t.co/q0VKYgRcuO
— Tom Hearden (@followtheh) May 27, 2021
You’re all caught up now. Thanks for reading!