Daily Chart Report 📈 Thursday, August 22, 2024
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Today’s Summary
Thursday, August 22, 2024
Indices: Dow -0.43% | S&P 500 -0.89% | Russell 2000 -0.95%| Nasdaq 100 -1.68%
Sectors: 4 of the 11 sectors closed higher. Real Estate led, gaining +0.61%. Technology lagged, dropping -2.30%.
Commodities: Crude Oil futures bounced +1.50% to $73.01 per barrel. Gold futures dropped -1.21% to $2,517 per oz.
Currencies: The US Dollar Index rose +0.38% to $101.52.
Crypto: Bitcoin is down -1.13%to $60,465. Ethereum is down -0.29% to $2,623.
Volatility: The Volatility Index rose +7.87% to 17.54.
Interest Rates: The US 10-year Treasury yield rose to 3.856%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
5 day SMA$SPY $QQQ $SMH $XBI
30 Minute timeframe from August 1Caution
This is the script I created and gave out last month pic.twitter.com/OAvS8xoFfd
— Brian Shannon, CMT (@alphatrends) August 22, 2024
Today’s Chart of the Day was shared by Brian Shannon (@alphatrends).
- The rally slammed on the brakes today as the S&P 500 was rejected at all-time highs. There were many Bearish Engulfing candles created today. These ominous candlestick patterns often signal short-term weakness.
- Brian points out that several key ETFs (The S&P 500, Nasdaq 100, Semiconductors, and Biotech) violated their 5-day moving averages today. This indicates that the short-term trend has turned lower. Semis are the most vulnerable, with a declining 5-DMA.
- Longer-term trends remain higher, but caution is warranted in the coming days if these ETFs (primarily $SPY and $QQQ) are below a 5-DMA. As Brian often says, “The trend is guilty until proven innocent.”
Takeaway: The market reversed lower today as the S&P 500 was rejected at its former highs. The index is less than 2% from record highs, and the long-term trend remains higher. However, caution is warranted in the coming days as the short-term trend has turned lower.
Quote of the Day
“There is nothing more deceptive than an obvious fact.”
– Sherlock Holmes
Top Links
Bulls Take Off – Bespoke
Bespoke breaks down the results of the latest AAII Sentiment Survey.
The Fed should be forceful next FOMC meeting, says Strategas’ Chris Verrone
Chris Verrone shares his thoughts on the current market environment.
New Kids on the Blockchain – All Star Charts
JC Parets checks on the state of the Crypto markets.
15 Ways to Lose Money in the Markets – A Wealth of Common Sense
Ben Carlson outlines five things investors should avoid.
Top Tweets
$SPX – The gap at 5622-5639 was partially filled with an intraday high of 5633. Today’s close is higher than Monday’s close which means that the rally is likely to continue until Friday. Powell’s speech on Friday is likely to be dovish so it may even print a new all time high. pic.twitter.com/xelo2O4v88
— CyclesFan (@CyclesFan) August 21, 2024
$SPY – bearish setup pic.twitter.com/yzgmRVbQG0
— Jamie Saettele, CMT (@JamieSaettele) August 22, 2024
Hmmmm…
Don’t like seeing a bearish engulfing candle near all-time highs, amidst a bearish divergence in momentum.
Could this be the start of a retest into the seasonally worst month of the year for the market, just 10-ish weeks before the Presidential Election?
$SPX pic.twitter.com/3lo6DDeevT
— Adam D. Koós, CFP®, CMT, CEPA (@AdamKoos) August 22, 2024
#NQ_F, 4hr
If bulls are not able to hold the 19700 level, we might be looking at the second significant Bull Trap. pic.twitter.com/fPglDBvM8R
— Yuriy Matso (@yuriymatso) August 22, 2024
As the $SPX $SPY approaches new highs:
while new 52wk lows are not picking up, new 52 week highs are less robust than previous highs pic.twitter.com/C6v92XK0oF
— Christian Fromhertz
(@cfromhertz) August 22, 2024
The #Semi #ETF had the largest sector pullback at 29% and has recouped only 50% of the drawdown – looks more vulnerable than the broader market. MACD also failed to recover to the centerline. Arguably the most crowded as well. I would be a bit careful here.$SOXX $XSD pic.twitter.com/CuCKIJ9V5Z
— David Burrows (@barometerca) August 22, 2024
Notable how our sector rankings has evolved from earlier in the year … Utes and REITs in strong positions, while cyclicals slip… what’s the market trying to tell us?
@StrategasRP pic.twitter.com/NChNofxPhz— Chris Verrone (@verrone_chris) August 22, 2024
#spequalweight S&P Equal weight index just eclipsed a +35% swing up off of a prior bear market low. pic.twitter.com/h5SdgpqNxh
— Nautilus Research (@NautilusCap) August 22, 2024
$DXY down to 101. Would assume we get some type of reaction here. TBD. pic.twitter.com/Mm7MdpEIeU
— Ian McMillan, CMT (@the_chart_life) August 22, 2024
Professor UST2Y arriving at #JacksonHole pic.twitter.com/85KrHbnn6t
— Mark Ungewitter (@mark_ungewitter) August 22, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Thursday, August 22, 2024 appeared first on The Chart Report.
