Daily Chart Report 📈 Thursday, July 11, 2024

Patrick Dunuwila The Chart Report

10 months ago

4 MIN READ

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Today’s Summary
Thursday, July 11, 2024

Indices: Russell +3.57%| Dow +0.08%| S&P 500 -0.88% | Nasdaq -2.24%

Sectors: 7 of the11 sectors closed higher. Real Estate led, gaining +2.66%. Tech lagged dropping -2.50%.

Commodities: Crude Oil futures rose +0.63% to $82.62 per barrel. Gold futures rose +1.77% to $2,422 per oz.

Currencies: The US Dollar Index dropped -0.46%to $104.50.

Crypto: Bitcoin fell -0.67%to $57,348. Ethereum was flat (-0.13%) at $3,099.

Volatility: The Volatility Index rose +0.55% to 12.91.

Interest Rates: The US 10-year Treasury yield dropped to 4.214%.

Here are the best charts, articles, and ideas shared on the web today!

Chart of the Day

$IWM best day vs $QQQ since 2001 pic.twitter.com/6Yr7amGsrD

— Mike Zaccardi, CFA, CMT (@MikeZaccardi) July 11, 2024

Today’s Chart of the Day was shared by Mike Zaccardi (@MikeZaccardi).

Today was a tale of two markets as Small Caps and Large Caps aggressively moved in opposite directions.

The Russell 2000 ($IWM) had its best day since October, rising +3.57%, while the Nasdaq 100 ($QQQ) had its worst day since October, dropping -2.24% from a record high after rising for seven consecutive days.

Mike points out that $IWM outperformed $QQQ by nearly +6% today, marking the widest spread in more than two decades. This ratio reached an all-time low yesterday, but today’s historic outperformance suggests a potential reversal.

The Takeaway: The Russell 2000 ($IWM) outperformed the Nasdaq ($QQQ) by the widest margin since 2001 today. This could start a healthy rotation into Small Caps as the Nasdaq digests its recent gains.

Quote of the Day

“Rotation is the lifeblood of any bull market.”

– Ralph Acampora

Top Tweets

Final heat map of the S&P 500’s $SPY performance from today pic.twitter.com/Co2Qc33zft

— Evan (@StockMKTNewz) July 11, 2024

Both the $QQQ (shown) and $SPY have an initial rejection at the 161.8% extension of the retracement of the 2022 drop pic.twitter.com/RYvsodnGiC

— Greg Harmon, CMT/CFA, President Dragonfly Capital (@harmongreg) July 11, 2024

Small cap summer loading? $IWM

Would be an impressive weekly breakout if it holds. pic.twitter.com/MFGgFaHcC3

— TrendSpider (@TrendSpider) July 11, 2024

There’s been just one other trading day since 1979 when the small-cap Russell 2,000 rose 3%+ while the S&P 500 was down on the day.

10/10/08: R2K was up 4.6%, S&P was down 1.2%
Today: R2K up 3.35%, S&P down 0.75% pic.twitter.com/lGYIw51VFM

— Bespoke (@bespokeinvest) July 11, 2024

The Russell 2000 $IWM posted its best day in history versus Large-Cap Technology $XLK. Is this the start of a small-cap summer? pic.twitter.com/Alv49w8yhG

— Sam Gatlin (@sam_gatlin) July 11, 2024

YTD highs for Banks$KBE pic.twitter.com/DwJR8ZrwJh

— Ian McMillan, CMT (@the_chart_life) July 11, 2024

Biotech finally completing a trend reversal $IBB fresh 30-month highs pic.twitter.com/ktBJMSwyDf

— Steven Strazza (@sstrazza) July 11, 2024

Homebuilders $ITB were up +6.2% today.

Read that again…

Then look at this market structure: pic.twitter.com/ViAoa7hzoS

— Caleb Franzen (@CalebFranzen) July 12, 2024

Gold closed at its highest price since May 21 pic.twitter.com/QF0ITnnyDe

— Barchart (@Barchart) July 12, 2024

Gold is taking a run at the upper boundary of a well defined rectangle.
Historically Gold does very well in times of declining yields#GOLD $GC_F pic.twitter.com/oaQMA2Vyl5

— Peter Brandt (@PeterLBrandt) July 11, 2024

Market justifying our “bullish bonds” positioning as 2yr yields break sharply lower today, keeping the pattern of lower-highs and lower-lows intact for rates. From our daily note this morning … @StrategasRP pic.twitter.com/wpUCC4qQkV

— Chris Verrone (@verrone_chris) July 11, 2024

Market breadth after watching everyone post the $RSP relative to $SPX chart for the last month+. pic.twitter.com/IkZFTLacB9

— Arun S. Chopra CFA CMT (@FusionptCapital) July 11, 2024