Daily Chart Report 📈 Friday, July 12, 2024
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Today’s Summary
Friday, July 12, 2024
Indices: Russell 2000 +1.09% | Dow +0.62% | Nasdaq +0.59% | S&P 500 +0.55%
Sectors: 10 of the 11 sectors closed higher. Consumer Discretionary led, gaining +1.31%. Communications lagged, falling -0.32%.
Commodities: Crude Oil futures fell -0.50% to $82.21 per barrel. Gold futures were unchanged at $2,421 per oz.
Currencies: The US Dollar Index dropped -0.40% to $104.08.
Crypto: Bitcoin rose +0.94% to $57,889. Ethereum rose +1.14% to$3,134.
Volatility: The Volatility Index dropped -3.56% to 12.45.
Interest Rates: The US 10-year Treasury yield dropped to a four-month low of 4.187%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
— Walter Deemer (@WalterDeemer) July 12, 2024
Today’s Chart of the Day was shared by Walter Deemer (@WalterDeemer).
- Despite yesterday’s stumble, the S&P 500 ($SPX) printed an all-time high for the second consecutive week, rising +0.86%. It’s closed higher in 10 of the past 12 weeks, rising +13%.
- Breadth dramatically improved this week. Walter points out that the NYSE Advance-Decline Line broke out to an all-time high for the first time in two months yesterday.
- This breadth indicator often leads the S&P 500 higher or lower. It peaked in May and stalled while the S&P 500 made new highs, forming a negative breadth divergence. However, this week’s breakout eliminates that bearish divergence.
The Takeaway: Breadth dramatically improved this week. The NYSE AD Line broke out to all-time highs for the first time in two months, eliminating a bearish divergence that had been in place since May.
Quote of the Day
“The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them.”
– Peter Lynch
Top Links
Stock Market & Crypto Analysis July 12 2024 – Alphatrend
Brian Shannon breaks down this week’s price action and some key levels to watch next week.
Post-July Fourth Flip Flop – Bespoke
Bespoke points out that the worst stocks have been the best over the past week.
There’s a Lot of Opportunity Away From Mega-Cap Growth, Says Strategas’ Todd Sohn – CNBC
Todd Sohn discusses the recent improvement in market breadth.
“Efficient Markets” lol – All Star Charts
JC Parets shares his thoughts on Thursday’s tape and the breakout in the Russell 2000.
XLC ETF Broke Out & Made New 52-Week High – Schwab Network
Frank Cappelleri discusses Small Caps, the US Dollar, and the Communications sector.
Top Tweets
DJIA 40,001 pic.twitter.com/bfR3YkiqAb
— Mike Zaccardi, CFA, CMT
(@MikeZaccardi) July 12, 2024
The Dow has turned a potential six-month, head-and-shoulders reversal into a consolidation break to fresh record highs above the conveniently rounded 40,000-mark.
Do we have a blue chips > tech kind of earnings season ahead of us? $DJIA pic.twitter.com/IzWZjQS72I
— John Kicklighter (@JohnKicklighter) July 12, 2024
Best week for Value relative to Growth since Jan ’21.$IWD $IWF pic.twitter.com/TnMLyu8ir3
— Shane C. Murphy (@murphycharts) July 13, 2024
Yesterday we saw the most new highs since 2021. This led to a 7 month rally. pic.twitter.com/N8xqG2doFw
— Against All Odds Research (@JasonP138) July 12, 2024
Highest reading of S&P 500 stocks outperforming the S&P 500 index in over two decades pic.twitter.com/MutrCjQ8in
— Grant Hawkridge (@granthawkridge) July 12, 2024
Most SPX cyclical tops lag the NYSE A-D line, placing this measure of breadth on the bullish side of the ledger. pic.twitter.com/Wxtaz4oTJ6
— Mark Ungewitter (@mark_ungewitter) July 12, 2024
The most bullish thing that the stock market can do is make new all-time highs.
Top: Equal-weight Nasdaq-100 $QQQE
Bottom: Nasdaq-100 $QQQ$QQQE started to make new all-time highs this week, which is what $QQQ did in December 2023 (and has gained +22% since then). pic.twitter.com/YPq6lRb1Zg— Caleb Franzen (@CalebFranzen) July 12, 2024
Small-caps $IWM just posted their widest margin of outperformance over large-cap tech $XLK at the exact level where this ratio bottomed (and stocks peaked) in March of 2000
pic.twitter.com/pk0S2n7c5g
— Steven Strazza (@sstrazza) July 12, 2024
Russell 2000 $RTY had it’s 4th best day EVER vs Russell 1000 $RIY. Curiously the three better days were lows of ’87, ’08 and Covid in 2020. Clearly we’re not in similar state in $SPX
— RenMac: Renaissance Macro Research (@RenMacLLC) July 12, 2024
my U.S. 10-year yield $TNX chart at the ’22 highs… pic.twitter.com/ashyAPyjwr
— David Cox, CMT, CFA (@DavidCoxRJ) July 12, 2024
#yields #30year #yield 30-year 3-year analogs. pic.twitter.com/LW4bXhCPkZ
— Nautilus Research (@NautilusCap) July 12, 2024
Since 2022, inflation concerns > growth concerns
Thus, rising bond yields were behind every significant equity selloff.
At least for a little bit, growth concerns will be > inflation concerns, which means there is a window for bonds to diversify again. pic.twitter.com/l8RxRncLoc
— Warren Pies (@WarrenPies) July 12, 2024
Incredible have a great weekend $ES_F https://t.co/OFGVXOgULr pic.twitter.com/ea4ZvkPwgW
— Arun S. Chopra CFA CMT
(@FusionptCapital) July 12, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Friday, July 12, 2024 appeared first on The Chart Report.
