Tuesday, August 9th, 2022
Indices: Dow -0.18% | S&P 500 -0.42% | Nasdaq 100 -1.15% | Russell 2000 -1.46%
Sectors: 4 of the 11 sectors closed higher. Energy led, gaining +1.76%. Consumer Discretionary lagged, falling -1.59%.
Commodities: Crude Oil futures slipped -0.29% to $90.50 per barrel. Gold futures gained +0.39% to $1,812 per ounce.
Currencies: The US Dollar Index inched lower by -0.07%.
Crypto: Bitcoin fell -2.53% to $23,220. Ethereum dropped -4.03% to $1,706.
Interest Rates: The US 10-year Treasury yield rose to 2.783%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared in a note by John Roque of 22V Research. The Semiconductor Index ($SOX) bounced roughly 30% off its July lows, however, John points out that it’s beginning to roll over again. On an absolute basis (top), it just made its third consecutive lower high and it remains below a downward sloping 200-day moving average. On a relative basis (bottom), it just made its fourth consecutive lower high and it remains below a downward sloping 126-day moving average. As we know, Semiconductors often lead the broader market higher or lower. Could Semi’s be trying to tell us something here?
Quote of the Day
“Progress is cumulative in science and engineering but cyclical in finance.”
– Jim Grant
Market Reaction to CPI – Bespoke
While everyone holds their breath for tomorrow’s CPI report, Bespoke examines how the S&P 500 has historically reacted to inflation data.
The Bull Case for Stocks – The Final Bar
David Keller and Ari Wald discuss the current market environment and what could be next.
SPX: Caution, Pullback Ahead! – CMT Association
Eric Conrads looks at the near-term outlook for the S&P 500.
Is it Really Risk-On? | Who Charted? – Research by Potomac
In this quick video, Dan Russo and Drew Wells highlight six charts in six minutes.
The Nature of Risk – Almanac Trader
Jeff Hirsch takes a look at where we are in the sentiment cycle.
Daily Mkt Mood: Cautious
Stocks down for 4th day before July CPI data, anything above est. 8.7% cld create a problem on idea Fed will have to remain aggressive.
— Abigail Doolittle (@TheChartress) August 9, 2022
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) August 9, 2022
If things don't get more interesting into this final hour of trade, we are going to be left with the smallest $SPX day's range (as a percentage of spot) of the year. Suits the activity of the last week, but very likely a #CPI anticipation pic.twitter.com/b5oWnPUrce
— John Kicklighter (@JohnKicklighter) August 9, 2022
OK, well that "bulls are in charge" thing was fun while it lasted… SPY and IWM back below "line(s) in the sand."
A fairly critical juncture right here IMO. #sentimentrader https://t.co/NIxBKeWjSM pic.twitter.com/jEY75mDwrw
— Jay Kaeppel (@jaykaeppel) August 9, 2022
— Shane C. Murphy (@murphycharts) August 9, 2022
— Michael Turvey (@MikeTurvey_TDA) August 9, 2022
Today was the 150th day of the year for 2022.
The S&P 500 is down 13.1% YTD, for the 8th worst start to a year ever.
The good news is bounces the rest of the year are normal. Up 8.8% on average, versus the average year gain of 2.3%. pic.twitter.com/02Y1ejBYVU
— Ryan Detrick, CMT (@RyanDetrick) August 9, 2022
The 2yr-10yr Treasury spread has been inverted for over a month now, and the 3m-10yr spread is right on its heels. Currently at just 15 bps. pic.twitter.com/ty4w9KC840
— Liz Young (@LizYoungStrat) August 9, 2022
— Alfonso Depablos (@AlfCharts) August 9, 2022
— Macro Charts (@MacroCharts) August 9, 2022
You’re all caught up now. Thanks for reading!