Tuesday, December 6th, 2022
Indices: Dow -1.03% | S&P 500 -1.44% | Russell 2000 -1.50% | Nasdaq 100 -2.01%
Sectors: 10 of the 11 sectors closed lower. Utilities was the only sector that closed higher, rising +0.62%. Energy lagged, dropping -2.88%.
Commodities: Crude Oil futures dropped -3.48% to a fresh 52-week low of $74.25 per barrel. Gold futures inched higher by +0.06% to $1,782 per ounce.
Currencies: The US Dollar Index rose +0.26% to $105.56.
Crypto: Bitcoin gained +0.75% to $17,095. Ethereum rose +1.00% to $1,273.
Interest Rates: The US 10-year Treasury yield fell to 3.535%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Steven Strazza (@sstrazza) December 6, 2022
Today’s Chart of the Day was shared by Steve Strazza (@sstrazza). It’s a chart of the Financial Sector ($XLF) over the past two and a half years. Financials are under pressure this week after being rejected at a key level, around $35. This level acted as support several times in 2021, but it’s been resistance for the majority of 2022. Steve also points out that RSI never reached overbought conditions (above 70) and it’s diverging negatively. Financials have been a leader recently, however seeing them fail to hold their August highs raises some concern over the validity of the recent leg higher in the broader market.
Quote of the Day
“I don’t call it technical analysis anymore, I call it data visualization”
– Ralph Acampora
When does the Santa Claus Rally Start? 🎅 ⏰ – Carson Group
Ryan Detrick outlines everything you need to know about the Santa Claus Rally.
The Bear Case for Stocks – All Star Charts
JC Parets examines the bear case of stocks.
Trouble Brewing in the Banks? – CNBC
Chris Verrone of Strategas Research shares his thought on the weakness in Bank stocks.
Are Investment Grade Bonds About to Rally? – Kimble Charting Solutions
Chris Kimble breaks down a chart of the Investment Grade Bond ETF, $LQD.
A Picture is Worth 1000 Words – Misha
This one isn’t market-related, but here’s a great Twitter thread on the value of data visualization.
All four major indexes — the S&P 500, Dow, Nasdaq 100 and Russell 2000 — have dropped 1% or more on two straight days, the first time that's happened since June 13.
— Callie Cox (@callieabost) December 6, 2022
S&P 500 (SPY) volume quite light for a 1.5% down day.
Two days in a row of heavy selling, yet volume has been light each day.
Given the downtrend line, this was a logical area for a break after the 14.1% rally off the October lows. pic.twitter.com/SDlGx36Nng
— Ryan Detrick, CMT (@RyanDetrick) December 6, 2022
Lower Highs & Lower Lows…
Downwards sloping 200-day average…
Price below 200-day average…
New Lows > New Highs…
— Grant Hawkridge (@granthawkridge) December 6, 2022
— David Settle, CMT (@davidsettle42) December 6, 2022
— ATMcharts (@ATMcharts) December 6, 2022
Yo, Charts – This is JPM. The third panel is JPM / S&P. pic.twitter.com/1K0k3m4UH7
— da Chart Life (@daChartLife) December 6, 2022
— David Nicoski CMT (@davevermilion) December 6, 2022
The theme of our breakout/breakdown reports for yesterday was weed over banks (hash over cash?). $KBWB broke down to its lowest levels since Q1 2021 on a relative basis. 1/4 pic.twitter.com/5LclwYBg54
— Rob Anderson (@_rob_anderson) December 6, 2022
After falling to break above its june high on an absolute basis, $XLE: $SPY RS continues lower after breaking back below its June high. A possible area of support would be the August high/rising 50ma. pic.twitter.com/aSoJ57CUEI
— Stacey.A.Lee (@BBaxter2020) December 6, 2022
— Willie Delwiche, CMT, CFA (@WillieDelwiche) December 6, 2022
— Ian McMillan, CMT (@the_chart_life) December 6, 2022
The YTD trend of Bitcoin is certainly not doing any favors for bulls, but we do see some notable volatility compression and relative strength (versus recent tradfi) just under this 17K area.
— Evan Medeiros (@evanmedeiros) December 6, 2022
Wen Santa rally? pic.twitter.com/4K7PCuNz10
— Ramp Capital (@RampCapitalLLC) December 6, 2022
You’re all caught up now. Thanks for reading!