Daily Chart Report 📈 Wednesday, August 7, 2024
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Today’s Summary
Wednesday, August 7, 2024
Indices: Dow -0.60% | S&P 500 -0.77% | Nasdaq 100 -1.16% | Russell 2000 -1.41%
Sectors: 4 of the 11 sectors closed higher. Utilities led, rising +0.56%. Consumer Discretionary lagged, falling -1.74%.
Commodities: Crude Oil futures rose +2.77% to $75.23 per barrel. Gold futures were flat at $2,432 per oz.
Currencies: The US Dollar Index rose +0.25% to $103.19.
Crypto: Bitcoin fell -1.64% to $55,136. Ethereum dropped -4.86% to $2,343
Volatility: The Volatility Index gained +0.51% to 27.84.
Interest Rates: The US 10-year Treasury yield rose to 3.943%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
The current S&P drawdown of roughly -8% isn’t much of an outlier… It’s only when there’s less than a 5% drawdown that the environment is particularly strange. pic.twitter.com/kpLFa96UNU
— Todd Sohn (@Todd_Sohn) August 7, 2024
Today’s Chart of the Day was shared by Todd Sohn (@Todd_Sohn).
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The S&P 500 was up as much as +1.73% earlier today but gave it all back, closing down -0.77%. The index is now -8.25% off record highs (on a closing basis).
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$SPX reached a max drawdown of -8.5% on Monday, its worst drawdown of the year.
- Corrections never feel healthy, but Todd reminds us that a 5-10% correction is normal. In fact, it would be odd if we didn’t correct at least -5%.
The Takeaway: Recent volatility in the S&P 500 has been completely normal so far despite the $VIX spiking to its 3rd highest level in history on Monday.
Quote of the Day
“One of the tricks of this business is, keep your losses down and then, if you have a few good breaks, the compounding works well for you.”
– Walter Schloss
Top Links
What a Dismal Start to August Could Mean for Stocks – Schaeffer’s Investment Research
Rocky White examines the outlook for the S&P 500 after an ugly start to the month.
A Little More Noise. A Lot More Volatility – Hi Mount Research
Willie Delwiche looks at the aftermath of Monday’s sell-off.
Stock Market & Crypto Analysis August 7 2024 – AlphaTrends
Brian Shannon breaks down this week’s volatile price action.
ETFs & Markets with Todd Sohn: The Equity Market Freakout of 2024 – Strategas Asset Management
Todd Sohn discusses the recent spike in the $VIX and more.
Top Tweets
S&P 500 $SPY with a Bearish Engulfing Candle pic.twitter.com/zVPMquEpPF
— Barchart (@Barchart) August 7, 2024
The S&P 500 has not traded strong into closes this week–notable pullbacks toward the end of each trading day. Possible explanations could be investors are hesitant to carry exposure overnight while Japanese markets are open. Or that the BTD mentality is shaken by recent vol. pic.twitter.com/D4QudG1PDX
— Liz Young Thomas (@LizThomasStrat) August 7, 2024
The last time $SPX closed > 2.4% from the intraday high was at the March lows… pic.twitter.com/6FJgc2B8Q9
— Optuma (@Optuma) August 7, 2024
#NASDAQ $QQQ Needs to hold above 200-day average for bullish outlook to remain intact. The battle is in the next few days. pic.twitter.com/NaTmmEy7Mh
— Aksel Kibar, CMT (@TechCharts) August 7, 2024
https://x.com/allstarcharts/status/1821343086452044018
$SPY closes under the AVWAP from the crash lows. IMO we need to see then retaken tomorrow in order to have a continued recovery. pic.twitter.com/m0bRoALuZz
— Michael Nauss, CMT, CAIA (@MichaelNaussCMT) August 7, 2024
Discretionary vs. Staples Analysis
$XLY vs. $XLP & $RSPD vs. $RSPS
New YTD Lows in Both Ratios Today
Add that to the “Not Bullish” Column pic.twitter.com/2i69PpbAXM
— Larry Thompson (@HostileCharts) August 7, 2024
Invesco Equal Weighted S&P 500 $RSP
not seeing signs of trouble here? looks like a legit pullback against… pic.twitter.com/kFUdtLCODy
— David Cox, CMT, CFA (@DavidCoxRJ) August 7, 2024
$SPX Monthly.
Over the past 25yrs, the market’s price return has come from just 5 combined years (’13, ’17, ’20-21, ’23).
Currently, a few years of future earnings growth is priced in. Don’t be surprised with a couple years of sideways. No, it’s not always risk on. pic.twitter.com/k635gYWzBU
— Brian G (@alphacharts) August 7, 2024
Real Estate $XLRE is in the process of completing a reversal pattern. Will it make it? pic.twitter.com/gfFc6Ju5GJ
— Alfonso Depablos, CMT (@AlfCharts) August 7, 2024
Highest momentum reading (daily RSI-14) in history for Real Estate relative to the S&P 500 $XLRE $SPY
pic.twitter.com/i4jppgfEx5
— Steven Strazza (@sstrazza) August 7, 2024
The stock market (using $SPY) has been tracking GOP odds to win the Presidency rather closely since the start of April. Most notably, the market’s recent peak on 7/16 coincides with the peak for the GOP’s odds to win. (data from https://t.co/1qj8Q5zKfk and @maximlott) pic.twitter.com/AqVYckAN6C
— Bespoke (@bespokeinvest) August 7, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Wednesday, August 7, 2024 appeared first on The Chart Report.
