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Today’s Summary
Monday, December 6th, 2021
Indices: Dow +1.87% | S&P 500 +1.17% | Nasdaq +0.93% | Russell 2000 +2.05%
Sectors: All 11 sectors closed higher. Consumer Staples led, gaining 1.76%. Health Care lagged, but still rose 0.57%.
Commodities: Crude Oil futures rebounded 4.87% to $69.49 per barrel. Gold futures slipped 0.25% to $1,780 per ounce.
Currencies: The US Dollar Index moved higher by 0.15%.
Interest Rates: The US 10-year Treasury yield rose to 1.436%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Seeing a short-term, positive divergence on the $SPX 60-min chart.
Would like to see a higher low, followed by a decisive break above 4,600 before I'd get too excited. pic.twitter.com/qyMAOjjOUJ
— Adam D. Koós, CFP®, CMT, CEPA (@AdamKoos) December 6, 2021
Today’s Chart of the Day was shared by Adam Koos (@AdamKoos). It’s a 60-min candlestick chart of the S&P 500 over the past three months. The S&P 500 is attempting to carve out a short-term bottom. It has managed to find some support over the past few session at a confluence of support from the September highs and the 50-day moving average. Adam points out that RSI is beginning to diverge positively from price, which is a sign that a short-term trend reversal is brewing. To be fair, RSI can diverge from price for a while before materializing into anything meaningful, so it would be prudent to wait for the S&P to reclaim 4,600 to confirm this bullish divergence.
Quote of the Day
“A group of people who think differently is a market.
A group of people who think alike is a mob.”
– Naval Ravikant
Top Links
“This Will Be a Big Week” – All Star Charts
JC Parets highlight some noteworthy charts to keep an eye on this week.
Russell 2000 Outlook: Walking a Slippery Slope – Nasdaq
Brian Joyce points out that the post-election surge in the Russell 2000 created a big ugly volume gap that could spell trouble if IWM breaks below 210.
Bonds are Back – Means to a Trend
Austin Harrison takes a look at the recent moves in Treasury yields.
Field Position – The Rotation Report
Aaron Jackson examines the bear case for stocks.
Natural Selection – The Weekly Trend
In this podcast, David Zarling and Ian McMillan highlight some of the most important technical developments on their radar.
Top Tweets
September highs in $SPX needs to hold. Bad things happen below that https://t.co/vEp5HvEbH3 pic.twitter.com/nCqxog5VNM
— J.C. Parets (@allstarcharts) December 6, 2021
Big jump in put/call ratios on Friday, highest levels this year.
Coupled with AAII bears highest in 14 months and sentiment is in the range of previous tradeable market lows. pic.twitter.com/L3qohFaFYa
— Ryan Detrick, CMT (@RyanDetrick) December 6, 2021
$SPY $SPX First test here at trendline resistance on the 60 min and the short-term moving averages on the daily. Do we blast thru or come back in? pic.twitter.com/dLuIixloV8
— Greg Rieben (@gregrieben) December 6, 2021
The stock market has been a huge growth engine for wealth creation but its largely an uncomfortable experience in the short run. The DJIA has spent 1/3 of the time in a bear market, 40% of the time recovering from bears, and only 26% making new (price) highs. pic.twitter.com/K3gDxJJ1lm
— Tony Welch, CFA, CFP®, CMT (@tonywelch17) December 6, 2021
Travel & Leisure having a day pic.twitter.com/dyglmLlGm8
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) December 6, 2021
Top performing stocks in the S&P 500 today. I sense a theme. pic.twitter.com/WcJkz2lwDi
— Eddy Elfenbein (@EddyElfenbein) December 6, 2021
Almost a third of the stocks in the Nasdaq Comp are down 50% from highs -SocGen pic.twitter.com/HQYXQFLdUz
— Gunjan Banerji (@GunjanJS) December 6, 2021
Funny watching people pretend the punch bowl is just now being removed. Internals have been diverging for a significant amount of time, with the most pumped stuff topping last fall.
The last A/D dump although sharp, is hardly where the damage was done. pic.twitter.com/84pT9tjSW4
— Arun S. Chopra CFA CMT? (@FusionptCapital) December 6, 2021
Joining the bear market crowd is $TSLA … yet, current -22% drawdown isn’t worst of this year
[Past performance is no guarantee of future results; individual stock shown for illustration purposes] pic.twitter.com/yvIkyKTsb2— Liz Ann Sonders (@LizAnnSonders) December 6, 2021
Every Ark ETF except $ARKX is currently in a bear market.https://t.co/GSOxWFM5Bo pic.twitter.com/jqvtw87Wdt
— Ramp Capital (??,?) (@RampCapitalLLC) December 6, 2021
You’re all caught up now. Thanks for reading!