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Today’s Summary
Thursday, July 1st, 2021
Indices: US Stocks closed higher in today’s session with the Dow advancing 131 points or 0.38%. The S&P 500 closed at a record high for the sixth straight day, rising 0.52%. The Nasdaq inched higher by just 0.13%. The Russell 2000 outperformed, gaining 0.81%.
Sectors: 10 of the 11 sectors closed higher. Energy led, gaining 1.74%. Consumer Staples was the only sector that closed lower, falling 0.30%.
Commodities: Crude Oil futures rose 2.40% to the highest level in nearly three years at $75.23 per barrel. Gold futures moved higher by 0.29% to $1,777 per ounce.
Currencies: The US Dollar Index gained 0.20%.
Interest Rates: The 10-year US Treasury yield slipped to 1.459%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Software testing breakout level today. Many breakouts are doing this today. $IGV $QQQ pic.twitter.com/2bH5MQYDOq
— Matthew Timpane, CMT (@mtimpane) July 1, 2021
Today’s Chart of the Day was shared by Matthew Timpane (@mtimpane). It’s a daily candlestick chart of the Software ETF, $IGV, since the March 2020 low. The top-weighted stocks in this ETF include giants like $ADBE, $MSFT, $CRM, $ORCL, and $INTU. This ETF broke out last week and is currently retesting the breakout level around $380-$390. Matthew adds that several other Tech-related ETFs are also retesting their recent breakout levels including, the Semiconductor ETF, $SMH, and the Cybersecurity ETF, $CIBR. It’s perfectly normal to see price throwback like this after a decisive breakout. But, if price fails to hold above the breakout level, things could turn ugly quickly. So, keep an eye on how these retests play out in the near term.
Quote of the Day
“Cheap things are not good; good things are not cheap.”
– Chinese Proverb
Top Links
Record Highs But Lack of Breadth Confirmation – Potomac Fund Management
Dan Russo gives an update on market breadth.
Sentiment Has Perked Up – Bespoke
Bespoke analyzes the results of the latest AAII Sentiment Survey.
The Technician Who Correctly Called the Last Breakout Sees More Gains Ahead for Stocks – CNBC
In this clip, Katie Stockton shares her technical perspective on the S&P 500.
DeFi Made Easy – Osprey
Phil Pearlman gives a brief intro to Decentralized Finance or DiFi, including some helpful resources to learn more about the concept.
2021 European Summit – CMT Association
Tomorrow is the last day of the CMT Association’s 2021 European Summit. They’ve got a stellar lineup of esteemed technical analysts, so be sure to register for the event!
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Top Tweets
$SPX has hit 6 consecutive days of all time highs. The longest streak ever is 8 days.
— Michael Antonelli (@BullandBaird) July 1, 2021
An object in motion tends to stay in motion…
The S&P 500 is up >5% for 5 consecutive quarters for only the second time in history.
The other time was 1953/1954.
The next four quarters it gained another 26.4%.
— Ryan Detrick, CMT (@RyanDetrick) July 1, 2021
Here we go, let's throw out some of the good omens the price of the S&P 500 left for us today.
First up, a favorite of mine. Nothing more than a 5 month winning streak.
26-1 for +12.85% on average one year later.
I guess Newton was right, objects in motion stay in motion. pic.twitter.com/DO6PRQk3tz
— Steve Deppe, CMT (@SJD10304) July 1, 2021
$NDX, daily
When NDX broke out above the 8000 resistance in 2019, it continued to make new all time highs for 18 weeks.
NDX broke out above the 14000 resistance 2 weeks ago. pic.twitter.com/R6ruhQhLDA
— Yuriy Matso (@yuriymatso) July 1, 2021
The largest drawdown the S&P 500 has seen this year was barely more than 4%. https://t.co/5PhKBfwnUu pic.twitter.com/COGIBU1O6h
— Bespoke (@bespokeinvest) July 1, 2021
Modest bounce in NAAIM equity exposure this week, no actionable extreme. Definitely not a sign of over-aggressive risk grab from these tactical managers.
With indexes at highs, people being fairly optimistic is the normal arrangement of things. pic.twitter.com/8MhNjNzl5A
— Michael Santoli (@michaelsantoli) July 1, 2021
#OIL! pic.twitter.com/crBWWOTVq1
— jeroen blokland (@jsblokland) July 1, 2021
Crude Oil closed above $75 a barrel for the first time since October 2018, up 89% over the last year. pic.twitter.com/H1zhxMNt9u
— Charlie Bilello (@charliebilello) July 1, 2021
One has it right, one has it wrong. But which one?? ??? $XLE $SPY $CL #Crude pic.twitter.com/wpgQRBTOaP
— Drew Wells, CMT, CIMA® (@DrewTheCharts) July 1, 2021
The monthly chart of #steel is strong!? pic.twitter.com/FdejUvrrlL
— Ian Culley (@IanCulley) July 1, 2021
Lumber (Sep '21) $WOOD I believe the appropriate phrase is "Timber" for breakdown of lumber on the weekly chart below August 2020 uptrend and its 40WMA. Also note the weekly MACD sell signal and falling WMAs. pic.twitter.com/4F0dheihzM
— Bailey.Baxter2020 (@BBaxter2020) July 1, 2021
So many warnings… so few declines.
— Walter Deemer (@WalterDeemer) July 1, 2021
You’re all caught up now. Thanks for reading!