Wednesday, September 20, 2023
Indices: Dow -0.22% | Russell 2000 -0.90% | S&P 500 -0.94% | Nasdaq 100 -1.46%
Sectors: 4 of the 11 sectors closed higher. Real Estate led, inching higher by +0.19%. Technology lagged, falling -1.57%.
Commodities: Crude Oil futures fell -0.91% to $89.66 per barrel. Gold futures gained +0.69% to $1,967 per oz.
Currencies: The US Dollar Index inched higher by +0.12% to $105.33.
Crypto: Bitcoin inched lower by -0.32% to $27,128. Ethereum fell -1.28% to $1,622.
Interest Rates: The US 10-year Treasury yield rose to 4.411% – its highest since 2007.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Yo, Charts – S&P to 4200. Under there and the business goes apoplectic. pic.twitter.com/fknyHFRssO
— da Chart Life (@daChartLife) September 20, 2023
Today’s Chart of the Day was shared by John Roque (@daChartLife). The S&P 500 appears to be resolving lower out of a narrowing pattern, as it violated the lower bounds of the pattern today. This pattern suggested that pressure was building for a large move, or trend, in either direction. John points out that today’s action opens the door for a -4.5% drop to support at 4,200. It would make a lot of sense to revisit 4,200, or “The Mendoza Line,” as John calls it. 4,200 coincides with the 200-day moving average, and it’s come into play numerous times over the past two years. Remember, we’re in the midst of what has historically been the worst two weeks of the year for the S&P 500.
Quote of the Day
“Be who you are and say what you feel, because those who mind don’t matter, and those who matter don’t mind.”
– Ron Chernow
Another Powell Fed Day Sees Stocks Tank Into the Close – Bespoke
Bespoke points out that today’s intraday price action in the S&P 500 was exactly what you’d expect from a Fed Day.
Stock Market Analysis September 20 2023 Alphatrends Anchored VWAP – Alphatrends
Brian Shannon analyzes recent price action and identifies some key levels to pay attention to in the remainder of the week.
What Recent Oil Spikes Could Mean for Stocks – Schaeffer’s Investment Research
Rocky White examines how Crude Oil and the S&P 500 have historically fared after a +30% spike in Oil prices.
Is 11-Year Cycle Signaling Gold and Silver Miners Rally? – Kimble Charting Solutions
Chris Kimble looks at what could be next for Precious Metals.
Mkt Mood: Higher For Longer
Some more rough treading for stocks may be ahead with yields and dollar set to climb.
— Abigail Doolittle (@TheChartress) September 20, 2023
Another Powell Fed Day. Incredible how closely today's action tracked the average. Look at this: pic.twitter.com/oF3erjKKZe
— Bespoke (@bespokeinvest) September 20, 2023
Pre-election years are usually strong the first half (check), then take a break around now (check).
They also tend to have a strong Q4, which we still fully expect.
In other words, the headlines are the headlines, but this is perfectly normal price action for a bull market. pic.twitter.com/nB52L2PIuC
— Ryan Detrick, CMT (@RyanDetrick) September 20, 2023
Looks like we have our wedge breakdown for the S&P 500. pic.twitter.com/Xl2xxOiOrf
— Caleb Franzen (@CalebFranzen) September 20, 2023
— Dash, CMT, CFP (@Dash_charts) September 20, 2023
The Russell microcap index (the bottom 1000 of the Russell 2000) is down 2.5% YTD and is only 5% above its cycle low. The Fed’s tightening campaign is having a predictable effect on most equities, except for the big growers, which are dancing to their own tune. pic.twitter.com/K4ElvkdeP7
— Jurrien Timmer (@TimmerFidelity) September 20, 2023
Markets/stocks retrace rallies. They correct.
It's part of the process.
We haven't even seen a garden variety 38% fib retracement from the bear market low.
If it happens, that's only a 13% correction after a 52% rally.
— Greg Rieben (@gregrieben) September 20, 2023
Despite choppiness of late, 3-month realized correlation for S&P 500 still quite low relative to history pic.twitter.com/ZCsW0pUBxp
— Liz Ann Sonders (@LizAnnSonders) September 20, 2023
— Brian G (@alphacharts) September 20, 2023
Don't look now, but the Financials are working on something.. pic.twitter.com/xFF0HiuYpB
— Austin Harrison, CFA, CMT (@meanstoatrend) September 20, 2023
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) September 20, 2023
— jeroen blokland (@jsblokland) September 20, 2023
Black is $WTAI "Artificial Intelligence and Innovation fund"
— Tyler Lovingood (@Tyler_Lovingood) September 20, 2023
— Brian Shannon, CMT (@alphatrends) September 20, 2023