Thursday, August 11th, 2022
Indices: Russell 2000 +0.31% | Dow +0.08% | S&P 500 -0.07% | Nasdaq 100 -0.65%
Sectors: 5 of the 11 sectors closed higher. Energy led by a wide margin, gaining +3.44%. Health Care lagged falling -0.65%.
Commodities: Crude Oil futures rose +2.62% to $94.34 per barrel. Gold futures fell -0.36% to $1,807 per ounce.
Currencies: The US Dollar Index slipped -0.10%.
Crypto: Bitcoin was flat and continues to trade around $23,963. Ethereum rose +1.27% to $1,878.
Interest Rates: The US 10-year Treasury yield rose to 2.889%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Alfonso Depablos (@AlfCharts) August 11, 2022
Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts). It’s a chart of the Russell 2000 over the past year. The Russell 2000 has bounced nearly 20% off its June lows, but Alfonso points out that it’s running into a confluence of resistance around $199. This level represents both the 200-day moving average and the VWAP anchored to the all-time high. As Alfonso points out, this would be a logical place to see some pause or consolidation. Small-Caps often lead the broader market higher or lower, so keep an eye on how this test plays out in the near term.
Quote of the Day
“The one thing I’ve learned about markets over time is that they tend to train you to ignore something and then humiliate you once you figure it doesn’t matter.”
– Stanley Druckenmiller
Do You Buy This Rally? – Bloomberg
Todd Sohn of Strategas Research shares his thoughts on the current market environment.
IWC: Micro Caps Outperform as Meme Stock Make a Comeback – SeekingAlpha
Mike Zaccardi takes a look at Micro-Cap stocks and the return of “meme stock mania”
Normalizing Sentiment – Bespoke
Bespoke breaks down the results of this week’s AAII Sentiment Survey.
A New Bull Market? – PFT Trading
Greg Rieben examines the current state of the market.
U.S. Stock Market About to Recieve Key Message From Fibonacci Level – Kimble Charting Solutions
Chris Kimble points out that several of the major indices are testing the 38.2% retracements of their declines.
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) August 11, 2022
Potential "shooting star" short-term reversal pattern on the S&P 500 Index??? A breakdown under 4177 support would confirm. pic.twitter.com/wEwaVhzNbX
— Brett Villaume, CMT, CAIA (@brettvillaume) August 11, 2022
NYSE printing a shooting star. pic.twitter.com/4HtGC48jTE
— Louis Spector (@EastCoastCharts) August 11, 2022
— Steven Strazza (@sstrazza) August 11, 2022
Here are the key ⚓️VWAP levels on
— Brian Shannon, CMT (@alphatrends) August 11, 2022
More than 80% of the stocks in the S&P 500 are now above their 50-day moving average.
Historically, thrusts like this tend to suggest continued strength (unless they happen in front of a 100 year pandemic).
Will this time be different? I say no, but what do you think? pic.twitter.com/6e3R8xrnUX
— Ryan Detrick, CMT (@RyanDetrick) August 11, 2022
% of SP500 Stocks Above 50DMAs > 90% — Probably why many folks are keeping an eye out for this breadth measure. pic.twitter.com/hA1EXR4Okz
— Nautilus Research (@NautilusCap) August 11, 2022
— Mark Ungewitter (@mark_ungewitter) August 11, 2022
— Shane C. Murphy (@murphycharts) August 11, 2022
Nasdaq went up by 40% from June to Sep 2000. Was it a bull market? No. So applying a 20% rule to call it a bull market is premature.
In my view, the 50% and 61.8% retracements are way more important. The 61.8% Fibo pushed NDX into a 80% drop from 2000 to 2003. pic.twitter.com/0tpiEOQ52b
— Yuriy Matso (@yuriymatso) August 11, 2022
You’re all caught up now. Thanks for reading!