Daily Chart Report 📈 Friday, August 9, 2024
Powered By:
Today’s Summary
Friday, August 9, 2024
Indices: Nasdaq +0.54% | S&P 500 +0.47%| Dow +0.13% | Russell 2000 -0.17%
Sectors: 10 of the 11 sectors closed higher. Communications led, gaining +0.85%. Materials lagged, inching lower by -0.08%.
Commodities: Crude Oil futures rose +0.85% to $76.84 per barrel. Gold futures gained +0.41% to $2,473 per oz.
Currencies: The US Dollar Index inched lower by -0.08%to $103.15.
Crypto: Bitcoin fell -1.36%to $60,860. Ethereum dropped -3.14% to $2,600.
Volatility: The Volatility Index dropped -14.38% to 20.36.
Interest Rates: The US 10-year Treasury yield fell to 3.942%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
The % of Bulls in the Investors Intelligence Sentiment Index moved down over 17% in the past 2 weeks (from 64.2% to 46.9%). That’s the biggest 2-week % drop in Bulls since the October 1987 crash. $SPX pic.twitter.com/4btxwRuUKX
— Charlie Bilello (@charliebilello) August 9, 2024
Today’s Chart of the Day was shared by Charlie Bilello (@charliebilello).
- The S&P 500 was unchanged this week (-0.04%) despite an ugly start. It opened lower by -3% on Monday, sending the Volatility Index ($VIX) to its third-highest reading of all time.
- Bulls have vanished recently. Charlie points out that The Investors Intelligence Survey saw the largest 2-week drop in Bullish sentiment since the 1987 crash. Bulls dropped from 64.2% to 46.9%.
- As a bull market matures, investors become overconfident and complacent. However, investors still clearly lack conviction. This is exactly why corrections are ‘healthy.’ They shake out the weak hands and reset sentiment to more sustainable levels.
The Takeaway: Bullish sentiment has plunged recently. At the end of a bull market, investors become complacent, but they’re still nervous these days. It only took a single-digit decline to scare them away.
Quote of the Day
“Pessimists are often right,
and optimists are often wealthy.”
– Justin Welsh
Top Links
Stock Market, Bitcoin and Bond Analysis 8/9/24 – Alphatrends
Brian Shannon reviews this week’s price action and some key levels for next week.
Three Market Sentiment Indicators Confirm Bearish Phase – StockCharts
David Keller examines sentiment amid the recent correction.
Don’t Let the Yen Carry You Away – All Star Charts
Ian Culley breaks down the outlook for the Japanese Yen.
DJIA Down 13 of Last 17 August Monthly Options Expiration Week – Almanac Trader
Jeff Hirsch looks at how stocks have historically performed during August OpEx week (next week).
The Dumbest Crash Ever – The Compound and Friends
Here’s a great discussion on this week’s volatility with Joe Fahmy, JC Parets, Josh Brown, and Michael Batnick.
Top Tweets
The S&P 500 stumbled early this week, dropping 3% on Monday but managed to erase most of that loss, ending the week with a narrow 0.04% decline. Investors are eyeing two key inflation reports next week, and any surprises could stir market volatility. pic.twitter.com/37FHrMTxsP
— Cetera Investment Management (@ceteraIM) August 9, 2024
STOP.
Hammer time!
$ES_F $NQ_F pic.twitter.com/x5Dkjau4hK
— TrendSpider (@TrendSpider) August 9, 2024
$XLK was down 7% at the open on Monday.
Finishes the week +0.2% pic.twitter.com/NtCsBjaGNP
— Mike Zaccardi, CFA, CMT
(@MikeZaccardi) August 9, 2024
I like $DJTA for a possible 30% move in the next couple of years. pic.twitter.com/ayH7Ysyywa
— Peter Brandt (@PeterLBrandt) August 9, 2024
Crazy to think that we generated a “Bear Market Low” level of “Fear” in the middle of a bull market this week.
— Matt Cerminaro (@mattcerminaro) August 9, 2024
$XLY vs. $SPX pic.twitter.com/dAieuWiTRv
— Ian McMillan, CMT (@the_chart_life) August 9, 2024
Risk appetite has softened with market volatility picking up. High Beta stocks have sharply underperformed Low Beta stocks. Is this rotation into low beta durable? pic.twitter.com/1i7QfqAwhN
— Thomas DiFazio (@ThomasDiFazio) August 9, 2024
Testing its 200 MONTHS MAV from under… pic.twitter.com/LSw0oOYk4c
— conradseric, CMT, CAIA, CEFA (@conradseric) August 9, 2024
Bitcoin up over $10,000 off this week’s lows. Look at this base pic.twitter.com/QLIe99IV6s
— J.C. Parets (@allstarcharts) August 9, 2024
This is why I always give my students one tight slap on the face (digitally) whenever they read macro-economic news and listen to predictions from the financial media.
To be a successful investor, you have to IGNORE the mainstream news and instead focus on staying invested in a… pic.twitter.com/b7XPFD0ydp
— Adam Khoo (@adamkhootrader) August 9, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Friday, August 9, 2024 appeared first on The Chart Report.
