Wednesday, December 1st, 2021
Indices: Dow -1.34% | S&P 500 -1.18% | Nasdaq -1.83% | Russell 2000 -2.34%
Sectors: 10 of the 11 sectors closed lower. Utilities was the only sector that closed higher, inching up 0.18%. Communications lagged, dropping 2.31%.
Commodities: Crude Oil futures fell 0.92% to a three-month low of $65.57 per barrel. Gold futures rose 0.44% to $1,784 per ounce.
Currencies: The US Dollar Index moved higher by 0.15%.
Interest Rates: The US 10-year Treasury yield fell to a two-month low of 1.407%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
With a close of 4513, the S&P 500 is now below:
1) it's respective September highs
2) 50 day moving average
3) AVWAP from the October lows (when the current rally began)
— Ian McMillan, CMT (@the_chart_life) December 1, 2021
Today’s Chart of the Day was shared by Ian McMillan (@the_chart_life). It’s a daily candlestick chart of the S&P 500 over the past six months. The S&P gapped higher this morning, but it reversed hard around noon and ended up closing 3% below today’s high. Ian points out that the S&P is now below a confluence of support from the September highs, the 50-day moving, and the AVWAP from the October lows. There’s really nothing bullish to say about this sort of price action. The S&P 500 is guilty until proven innocent as long as it’s below this key area.
Quote of the Day
“I would like to see more volatility in the markets. Small shocks remind us that a bigger shock might occur and we protect ourselves to some extent.”
– Myron Scholes
6 Things to Know About December and Omicron – LPL Financial Research
The team at LPL Financial research shares some must-see charts and stats to keep in mind as we head into December.
Stock Market Dilemma: Transports and Small Caps May Have Topped – Kimble Charting Solutions
Chris Kimble shows that the Dow Transports and the Russell 2000 just formed bearish reversal candles on their monthly charts.
No Man’s Land – All Star Charts
Steve Strazza takes a look at the mess in the Financial sector.
Semis Outperforming Software – Bespoke
Bespoke explains that Semiconductor stocks are notably outperforming Software stocks.
These 3 Sectors Tend to Soar into Year-End – SentimenTrader
Jason Goepfert points out that Real Estate, Financials, and Health Care have bullish seasonality late in the year.
Here's a fun fact. Since 1983, this is the first time that a day when the index fell beneath its 50-DMA for the first time in at least six weeks ended with a 1% selloff in the last 15 minutes.
— George Pearkes (@pearkes) December 1, 2021
December might be strong for stocks, but remember it is the second half of the month when Santa tends to show up. pic.twitter.com/I6nFoGHeVn
— Ryan Detrick, CMT (@RyanDetrick) December 1, 2021
— Stage 2 Stocks (@Stage2Stocks) December 1, 2021
— Tom Hearden (@followtheh) December 1, 2021
The Russell 2000 Index has trailed the S&P 500 for 12 straight days through Tuesday, the longest streak ever. pic.twitter.com/ZygHzXZgMv
— Elena Popina (@lena_popina) December 1, 2021
This is ugly… pic.twitter.com/GsdnOHykw0
— Walter Deemer (@WalterDeemer) December 1, 2021
Nasdaq composite is off its ATH by just 3.2%, mostly because AAPL, MSFT, GOOG, NVDA and ADBE have held up.
BUT 66% OF NASDAQ STOCKS ARE IN A BEAR MARKET
35% HAVE LOST MORE THAN 50% SINCE THEIR ATH
Breadth is usually a leading indicator of trend.
Watch out! pic.twitter.com/wZ1FwPO0N3
— Vincent Deluard (@VincentDeluard) December 1, 2021
Value Line Geometric Index now 9% off its peak and with its lowest close since March. pic.twitter.com/5TodvexciD
— Willie Delwiche (@WillieDelwiche) December 1, 2021
— Pratyush Tulsian (@PrattyCharts) December 1, 2021
— Andrew Thrasher, CMT (@AndrewThrasher) December 1, 2021
— Shane C. Murphy (@murphycharts) December 1, 2021
The BBB yield spread narrowed (fell) when $SPY declined in September, but widened (rose) during the recent decline. This is probably oil related, but the widening is rather pronounced and shows some stress creeping into the bond market. $MBBB $LQD $JNK pic.twitter.com/NZdVO0ABih
— Arthur Hill, CMT (@ArthurHill) December 1, 2021
Another 5% drop and we’ll enter right into the Buffett/Munger/Aristotle quote phase
— Ramp Capital (🎅🏽,🎄) (@RampCapitalLLC) December 1, 2021
You’re all caught up now. Thanks for reading!