Daily Chart Report 📈 Thursday, May 23, 2024
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Today’s Summary
Thursday, May 23, 2024
Indices: Nasdaq -0.44% | S&P 500 -0.74% | Dow -1.53% | Russell 2000 -1.60%
Sectors: All 11 sectors closed lower. Tech led but still fell -0.81%. Real Estate lagged, dropping -2.12%.
Commodities: Crude Oil futures fell -0.90% to $76.87 per barrel. Gold futures dropped -2.33% to $2,337 per oz.
Currencies: The US Dollar Index rose +0.13% to $105.05.
Crypto: Bitcoin fell -1.70% to $67,945. Ethereum rose +1.22% to $3,782.
Volatility: The Volatility Index rose +3.90% to 12.78.
Interest Rates: The US 10-year Treasury yield rose to 4.477%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Sell in May and Go Away? pic.twitter.com/Pr7JkYlqpJ
— Jeffrey W. Huge, CMT (@Alpha_Insights) May 23, 2024
Today’s Chart of the Day was shared by Jeff Huge (@Alpha_Insights).
- The S&P 500 ($SPX) engulfed the prior six sessions today, falling -0.75%. This bearish engulfing candle will be confirmed if $SPX continues lower tomorrow. On a brighter note, the index is still above its March highs.
- In addition to this bearish reversal candle, Jeff highlights a bearish divergence between the Volatility Index ($VIX) and the Volatility of the Volatility Index ($VVIX).
- This divergence is bullish for volatility in the near term and, therefore, bearish for the stock market. The $VVIX was also diverging like this before the Covid crash and other meaningful sell-offs.
The takeaway: The S&P 500 formed a bearish engulfing candle today after an ugly reversal. Meanwhile, the $VIX and $VVIX have formed a bearish divergence over the past three weeks. This is certainly a red flag in the near term, but there’s no reason to panic until $SPX violates the March highs.
Quote of the Day
“The best investors I’ve seen all have an above-average ability to change their mind.”
– Joel Tillinghast
Top Links
Profit Taking Arrives – Trading Adventures
Andy Moss recaps this week’s price action.
The Mad Mob is Front-Running NVIDIA – The Bear Traps Report
Larry McDonald looks at what could happen if $NVDA surpasses $AAPL in market cap.
Nvidia is ‘Central to the Growing Tech Story’: Strategist – Yahoo Finance
Jay Woods shares his thoughts on $NVDA’s earnings report.
Market Strength Fading After Memorial Day – Almanac Trader
Jeff Hirsch examines how stocks have historically performed the week after Memorial Day.
Gold Miners (GDX) Facing 13-Year Resistance!!! – Kimble Charting Solutions
Chris Kimble points out that the Gold Miners ETF ($GDX) has coiled into a pennant pattern over the past decade.
Top Tweets
The market is fully red, except for Nvidia, $NVDA. pic.twitter.com/7IsWt9ZHDD
— unusual_whales (@unusual_whales) May 23, 2024
$SPY bearish engulfing the previous 6 days. Similar to that April 4 candle.
But will it follow through tomorrow ahead of the long weekend? pic.twitter.com/igvb1edGju
— Mike Zaccardi, CFA, CMT
(@MikeZaccardi) May 23, 2024
Today’s SPX candlestick is not a bearish engulfing. In Nison’s book, Japanese Candlestick Charting Techniques, he writes on engulfing patterns: “…the second real body of the engulfing candle should be the opposite color of the first real body.” Pg 43. Bulkowski says the same. pic.twitter.com/vB5dkQYosX
— Louis Spector, CMT (@EastCoastCharts) May 23, 2024
$NVDA dominated trading today, with the largest gain (only 54 $SPX stocks closed higher). $86 billion of $NVDA shares traded today, which was a quarter of all dollars traded: pic.twitter.com/A8i8n8OHlm
— Optuma (@Optuma) May 23, 2024
The S&P 500 $SPY suffered a bearish engulfing candle at a new high.
Even worse (on a chart), it gapped to a new high then closed at a 5-day low.
If you sold based on these patterns any other time, you’d be a loser pretty much every time. pic.twitter.com/XefDUPN3p0
— Jason Goepfert (@jasongoepfert) May 23, 2024
How significant is today’s big decline?
Through yesterday, the $SPX had logged 11 gains and 5 losses in May.
The biggest loss before today had been 34 basis points (May 1st).
The last time the… pic.twitter.com/i09SW6wAKt
— Frank Cappelleri (@FrankCappelleri) May 23, 2024
Today is the 100th day of 2024.
The S&P 500 is set to be up double digits YTD.
Recent years to do this? 2021, 2019, 2013, 1998, 1997, 1996, and 1995.
s might remember those years.
Those years weren’t the worst years to look for continued gains the second half of the year. pic.twitter.com/3PtImenaxf
— Ryan Detrick, CMT (@RyanDetrick) May 23, 2024
Is this enough relative damage for the #transports versus #industrials. Underperforming by 10 percentage points YTD, the worst since 2019. An economic bellwether or more opportunity? pic.twitter.com/4pnO1X1Lrk
— Frances Horodelski (@fhoro) May 23, 2024
At -3.7%, this is the worst 2-day return for #Gold since last February (15 months) pic.twitter.com/cnnDWQCXCJ
— Matt Weller CFA, CMT (@MWellerFX) May 23, 2024
At $2.6 trillion, Nvidia’s market cap is now $890 billion higher than all of the companies in the S&P 500 Energy sector … combined.
The total net income of the Energy sector is $128 billion vs. $43 billion for Nvidia. $NVDA $XLEhttps://t.co/l5IYmkf6Ih pic.twitter.com/zo21P3wI1t
— Charlie Bilello (@charliebilello) May 23, 2024
At every point on this chart you could have made a plausible case that:
1) the future was dim
2) the young generation was lazy
3) politicians were screwing everything up pic.twitter.com/9NXJ9lB2Rr— Morgan Housel (@morganhousel) May 23, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Thursday, May 23, 2024 appeared first on The Chart Report.
