Daily Chart Report 📈 Thursday, June 20, 2024
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Today’s Summary
Thursday, June 20, 2024
Indices: Dow +0.77% | S&P 500 -0.25% | Russell 2000 -0.39% | Nasdaq 100 -0.79%
Sectors: 8 of the 11 sectors closed higher. Energy led, rising +1.84%. Technology lagged, falling -1.12%.
Commodities: Crude Oil futures rose +0.72% to $81.29 per barrel. Gold futures gained +0.94% to $2,369 per oz.
Currencies: The US Dollar Index gained +0.41% to $105.66.
Crypto: Bitcoin was flat (-0.16%) at $64,845. Ethereum fell -1.36% to $3,511.
Volatility: The Volatility Index gained +6.24% to 13.27.
Interest Rates: The US 10-year Treasury yield rose to 4.263%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Hmmmm? $NVDA pic.twitter.com/1IhUk3pyqo
— Michael Kahn, CMT (@mnkahn) June 20, 2024
Today’s Chart of the Day was shared by Michael Kahn (@mnkahn).
- Nvidia ($NVDA) finally cracked today, forming a bearish engulfing candle. However, it must continue lower tomorrow before this bearish pattern can be confirmed.
- $NVDA printed a similar candle on March 8th before correcting -20%. Michael compares the two reversal candles, pointing out that volume was twice as heavy on March 8th. Today’s volume was pretty average, suggesting the bears lack conviction.
- Nobody should be surprised if $NVDA pulls back here. The stock has been stronger than usual lately, surging +70% in the past two months.
The takeaway: $NVDA formed a bearish engulfing candle today after a remarkable two-month rally. Friday’s candle will either confirm or invalidate this bearish pattern.
Quote of the Day
“I don’t think it’s productive to wallow in regret. But if you’ve lost money in a stock and you don’t learn anything, that’s wasted money. Figure out what it is that you did wrong and don’t do it again.”
– Joel Tillinghast
Top Links
Is S&P 500 Equal Weight Index About To Topple Market? – Kimble Charting Solutions
Chris Kimble points out that the Equal Weight S&P 500 is testing a pivotal level.
Price Pays… But for How Long? – StockCharts.com
Julius de Kempenaer looks at the ongoing breadth divergence.
How Low Can Volatility Go – LPL Financial Research
Adam Turnquist examines the outlook for the Volatility Index ($VIX).
The Market is Due For a Pause, Says Freedom Capital’s Jay Woods – CNBC
Jay Woods offers his technical perspective on the market.
Asset Allocation, Momentum Trading, & Recession-Resilient Portfolios | Ryan Detrick (Carson Group) – Trends with Friends
Ryan Detrick joins the Trends with Friends podcast to share his perspective on markets and more.
Top Tweets
$NDX back to a weekly RSI > 70
Sounds spooky. But what does history tell us?
A year later…
87% chance of a gain, average return of 20%: pic.twitter.com/5HIFiDj2dV
— Ian McMillan, CMT (@the_chart_life) June 20, 2024
The Nasdaq 100s RSI-14 has crossed above 80 which has led to some near-term weakness the past 5 times we’ve seen it pic.twitter.com/2SqarEJhUu
— Scott Brown, CMT (@scottcharts) June 20, 2024
there are 29 large-cap stocks that are up +30%+ in the last 3-months… here they are! pic.twitter.com/3fL8vQz5kv
— David Cox, CMT, CFA (@DavidCoxRJ) June 20, 2024
$NVDA +83% last 2 months pic.twitter.com/0Zn33wIatb
— Mike Zaccardi, CFA, CMT
(@MikeZaccardi) June 20, 2024
Today’s $NVDA candle looks a lot like the candle from March 8, 2024.
Why is this important?
It produced a peak to trough drawdown of -22% over a 6-week period.
Despite that -22% drawdown, the stock is up +35% since March 8th.
Probably sets up a nice buying opportunity soon. pic.twitter.com/TJCdCHDcY5
— Caleb Franzen (@CalebFranzen) June 20, 2024
As crazy as it seems this is actually $NVDA‘s 5th 10X+ move. pic.twitter.com/e7z0PqgUZJ
— Arun S. Chopra CFA CMT
(@FusionptCapital) June 20, 2024
Is $SMH getting extended here?
Sure.
Are semis as a whole? Absolutely not.
The Equal Weight Semiconductor ETF $XSD just recently broke out of a more than two-year old base. pic.twitter.com/TfelCZnbvS
— Justin Spittler (@JSpitTrades) June 20, 2024
The $XLK Tech and $XLC Comm Services ETFs are the 2 best performing sectors in 2024, up +20% and +15.5%, respectively through Tuesday.
However, since the 4/19/24 low, XLK is up nearly +18% vs. just 5% for XLC.
This has created a new multi-DECADE low in the XLC/XLK relative… pic.twitter.com/izXO2CLyG0
— Frank Cappelleri (@FrankCappelleri) June 20, 2024
Today’s Bullish Drill Down (June 20th) as close approaches
Strongest Sector: Energy +2.06%
Strongest Energy Industry: Equip. Serv. +2.50%
Strongest Equip. Serv. Stock: #SLB +2.86%
Not a recommendation#thinkorswim #charts: pic.twitter.com/loo6HoUcLR
— Ken Rose CMT (@KenRoseCS) June 20, 2024
Considering buying gold on the recent sell-off? History shows oversold conditions like this can be a buying opportunity in an uptrend. NDR is keeping watch for a potential buy signal from our short-term model.
Check out our blog: https://t.co/W0dSFPHpBd#NedDavisResearch #gold pic.twitter.com/szoE8LPEJZ— Ned Davis Research (@NDR_Research) June 20, 2024
History supports a pullback here on $SPY…
This week’s mean return & next week’s win rate are among the lowest over the last two decades.
pic.twitter.com/VsVN7gS7c0
— TrendSpider (@TrendSpider) June 20, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Thursday, June 20, 2024 appeared first on The Chart Report.
