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Today’s Summary
Tuesday, July 20th, 2021
Indices: US Stocks rebounded in today’s session, with the Dow bouncing 550 points or 1.62%. The S&P 500 and Nasdaq rose 1.52% and 1.57%, respectively. The Russell 2000 outperformed, gaining 2.99%.
Sectors: All 11 sectors closed higher. Industrials led, rising 2.80%. Consumer Staples lagged, inching up just 0.03%.
Commodities: Crude Oil futures moved higher by 1.28% to $67.20 per barrel. Gold inched higher by 0.12% to $1,811 per ounce.
Currencies: The US Dollar Index rose 0.15%.
Interest Rates: The 10-year US Treasury yield moved higher to 1.223%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The S&P 500 is notching its seventh successful test of the 50-day moving average in 2021. Surprised? $SPY $SPX pic.twitter.com/PZGZKTY7Gq
— Matt ?, CMT (@topstockcharts) July 20, 2021
Today’s Chart of the Day was shared by Mattew Fox (@topstockcharts). It’s a daily candlestick chart of the S&P 500 throughout 2021. The S&P 500 gapped lower to start the week yesterday, but buyers showed up at the 50-day moving average once again. Matthew points out that this is the seventh successful test of the 50-day moving average this year. Clearly, this is an important moving average to keep an eye on. Eventually, it will fail. But, it doesn’t make much sense to fight the trend as long as the S&P 500 is above an upward sloping 50-day moving average. The bears had their chance to take us lower, but the bulls stepped in exactly where they needed to today. Heck, we even reclaimed the 5-day moving average in today’s session. After a quick trip to the 50-day moving average for the seventh time this year, all-time highs are now the next objective.
Quote of the Day
“It’s not what you look at that matters, it’s what you see.”
– Henry David Thoreau
Top Links
Support Levels are Being Tested – Potomac Fund Management
Dan Russo examines the strongest/weakest sectors of the S&P 500.
July Conference Call: 5 Key Takeaways – All Star Charts
The team at All Star Charts highlights five themes to watch in the coming weeks.
Finding Strength in Life and Markets – Against All Odds
In this video, Jason Perz interviews Steve Strazza. They discuss trading, technical analysis, and more.
Bitcoin Drawdown – Bespoke
With Bitcoin breaking below $30k today, Bespoke compares the current drawdown to past drawdowns.
Are Bitcoin Prices Headed For Further Losses In The Short-Term? – Forbes
Several analysts share their technical outlook on Bitcoin.
Top Tweets
While the breadth data is still a concern, it's hard to ignore the resilience of $SPX holding its 50-day MA and momentum holding in its bullish range. pic.twitter.com/oZRNsNVYGL
— Andrew Thrasher, CMT (@AndrewThrasher) July 20, 2021
$ES, 4h
Just another Bear Trap…. nothing to see here 🙂 pic.twitter.com/A9MPttNDlv
— Yuriy Matso (@yuriymatso) July 20, 2021
Remember, in the average year for the S&P 500 there are about 3 separate 5% pullbacks per year.
There hasn't been one since September 2020.
That's a long time without a normal pullback. pic.twitter.com/JGuWKu8M8f
— Ryan Detrick, CMT (@RyanDetrick) July 20, 2021
The first big sell off greater than -1% is usually not the low (blue vertical lines). That said, the last 2 times it was (green vertical lines) $spy pic.twitter.com/qGDHtmnNl6
— Urban Carmel (@ukarlewitz) July 20, 2021
$IWM +3.4%
best day for the Russell in a minute pic.twitter.com/Ffc6DfxQzl— Mike Zaccardi, CFA, CMT (@MikeZaccardi) July 20, 2021
$IWM moved higher retesting an area that has acted as support for the 4th time. I will be paying attention to the volume on the move higher, as volume has expanded on the move lower. pic.twitter.com/eNhNepIHU5
— Bailey.Baxter2020 (@BBaxter2020) July 20, 2021
And just like that, when all hope appears to be lost… we find our “Line in the Sand.” For small-caps, its about $206 to $208 on ticker IWM.
Above = GOOD
Below = (Potentially Very) BAD pic.twitter.com/EO5KWHv3kX— Jay Kaeppel (@jaykaeppel) July 20, 2021
Will we see a relative bounce here for Small Caps? $IWM $RUT pic.twitter.com/0MyqVBO5M5
— Ian McMillan, CMT (@the_chart_life) July 20, 2021
Crude Oil better hold 66, or there's probably a lot more downside in Energy. It's ability (or inability) to hold those levels will be telling pic.twitter.com/rqg2u8DQbs
— J.C. Parets (@allstarcharts) July 20, 2021
#Bitcoin falls below USD 30,000! pic.twitter.com/AoLAF1I0Pd
— jeroen blokland (@jsblokland) July 20, 2021
Renko charts, originating in Japan, are probably the most useful for staying with a trend and not getting whipped around by shorter-term volatility. As shown for $BTC #Bitcoin, the trend from $6,000s to $60,000s was steady. So has been the decline since April pic.twitter.com/BLi8LpKviy
— Peter Brandt (@PeterLBrandt) July 20, 2021
Stocks are barely off the highest level in the entire history of the world pic.twitter.com/RYAcnPAQZe
— Hipster (@Hipster_Trader) July 20, 2021
You’re all caught up now. Thanks for reading!