Daily Chart Report 📈 Friday, July 26, 2024
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Today’s Summary
Friday, July 26, 2024
Indices: Russell 2000 +1.67% | Dow +1.64% | S&P 500 +1.11% | Nasdaq +1.03%
Sectors: All 11 sectors closed higher. Communications led, gaining +1.87%. Energy lagged, but still rose +0.32%.
Commodities: Crude Oil futures fell -1.43% to $77.16 per barrel. Gold futures rose +1.17% to $2,381 per oz.
Currencies: The US Dollar Index inched lower by –0.07% to $104.33.
Crypto: Bitcoin gained +3.23% to $65,704. Ethereum rose +3.19% to $3,275.
Volatility: The Volatility Index dropped -11.32% to 16.38.
Interest Rates: The US 10-year Treasury yield dropped to 4.194%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Small Cap Stocks $IWM have finally broken through the 3.5 year trendline against the S&P 500 $SPY pic.twitter.com/jyrTS6hElM
— Barchart (@Barchart) July 26, 2024
Today’s Chart of the Day was shared by Barchart (@Barchart).
- The Russell 2000 ($IWM) closed higher for the third consecutive week, gaining +3.4%. $IWM is up +11.6% during this period, marking its best three-week rally since November 2020.
- Its relative performance has been even more notable. $IWM has outperformed $SPY by +13.7% over the past three weeks, marking its best three-week outperformance ever!
- As dramatic as it’s already been, this rotation is likely in its infancy. Barchart points out that the relative trend ($IWM/$SPY) violently broke a 3½-year downtrend line this week. There’s plenty of room for this to continue, considering it’s bouncing off a 24-year low.
The Takeaway: The Russell 2000 closed higher and outperformed for the third consecutive week. The relative trend broke a 3½-year downtrend line, setting us up for a Small-Cap Summer.
Quote of the Day
“I think the best rule for me personally, is that if I feel a little unsafe where I’m going, then I’m going in the right direction. If I’m feeling comfortable with what I’m doing, something’s wrong.”
– David Bowie
Top Links
Stock Market Analysis July 26 2024 – AlphaTrends
Brian Shannon breaks down this week’s price action and some key levels for next week.
Sell Puts When You Can – All Star Charts
JC Parets looks at the breakout in Berkshire Hathaway ($BRKB).
Flying Financials. Will It Be Enough? – StockCharts
Julius de Kempenaer looks at recent sector rotation within the S&P 500.
Mean Reversion Correction Sets Up #1 NASDAQ Month in Election Years – Alamanc Trader
Jeff Hirsch points out that August has historically be the best month for the NASDAQ in election years.
Top Tweets
The week that was…
Heavy selling in the Magnificent 7… but it appears that the money was flowing into smaller stocks, rather than cash.
Health Care perking up nicely! pic.twitter.com/W8Au4NV7NE
— Brandon Van Zee (@BrandonVanZee) July 26, 2024
30For the 2nd consecutive week the $SPX declined but the number of stocks advancing on the week outnumbered those declining (308 vs 194): pic.twitter.com/dOKcfU1rsl
— Optuma (@Optuma) July 26, 2024
Back-to-back weekly losses in large-cap land $SPY pic.twitter.com/NL5x11LKj9
— Mike Zaccardi, CFA, CMT
(@MikeZaccardi) July 26, 2024
Record high weekly close for the $DJIA – keep perspective pic.twitter.com/Hv6OQTdSX6
— Matt Weller CFA, CMT (@MWellerFX) July 26, 2024
IMO, the decline in the Dow appears to be a retest of the BO of the underlying coil. A Friday close at current levels would be weekly foot shot on candlesticks and it would represent a measured-risk buy signal $YM_F $MYM_F pic.twitter.com/6oo5uyLqa4
— Peter Brandt (@PeterLBrandt) July 26, 2024
Fun Fact: If July ended today, it would be the highest monthly close for the Small-cap S&P600 in the history of the index. pic.twitter.com/MlQBWF2clM
— J.C. Parets (@allstarcharts) July 26, 2024
US Small Caps are up 10% over the last 12 trading days while US Large Caps are down 3%. The 13% spread is the largest 12-day Small Cap outperformance ever. $IWM $SPYhttps://t.co/l5IYmkeySJ pic.twitter.com/bytZeYonQn
— Charlie Bilello (@charliebilello) July 26, 2024
Here’s a long term look for R2000 / S&P pic.twitter.com/CINGRW9az4
— da Chart Life (@daChartLife) July 26, 2024
Regional banks are up 20% THIS MONTH.
If the world was ending, if that darn yield curve we keep hearing about was so bad, or if LEIs were ever accurate, I just don’t think this would be happening.
Regional banks doing this is nothing but very bullish overall for the
. pic.twitter.com/7O5bs0xual
— Ryan Detrick, CMT (@RyanDetrick) July 26, 2024
$RSP SPX Equal Weight +0.8% this week
+3.3% July$SPY SPX Mkt Cap Weight -0.8% this week
flat in July pic.twitter.com/QwY6mPvXVi— Christian Fromhertz
(@cfromhertz) July 26, 2024
#Bitcoin has historically exhibited exponential gains during bull cycles, but each cycle has also seen numerous large drawdowns. The current cycle has seen:
– Eight drawdowns between 5%-20%
– Two drawdowns between 20%-30%
– No drawdowns greater than 30%More insights from our… pic.twitter.com/CkT3OL4T17
— glassnode (@glassnode) July 26, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Friday, July 26, 2024 appeared first on The Chart Report.
