Daily Chart Report 📈 Friday May 10, 2024
Powered By:
Today’s Summary
Friday May 10, 2024
Indices: Dow +0.32% | Nasdaq 100 +0.26% | S&P 500 +0.17% | Nasdaq 100 -0.67%
Sectors: 7 of the 11 sectors closed higher. Consumer Staples led, gaining +0.57%. Energy lagged, falling -0.55%.
Commodities: Crude Oil futures fell -1.26% to $78.26 per barrel. Gold futures gained +1.48% to $2,375 per oz.
Currencies: The US Dollar Index rose +0.11% to $105.31.
Crypto: Bitcoin fell -3.62% to $60,793. Ethereum dropped -4.17% to $3,036.
Volatility: The Volatility Index fell -0.95% to a three-month low of 12.56.
Interest Rates: The US 10-year Treasury yield rose to 4.500%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Defensives, especially utlities, have been catching a buzz. However, they remain in a downtrend relative to $SPY.
Broad equities may need to grind a bit more, but look very constructive over the summer. https://t.co/yIdRlWcClP pic.twitter.com/7sMKvjtk1r
— Brian G (@alphacharts) May 10, 2024
Today’s Chart of the Day was shared by Brian G (@alphacharts).
- Defensive leadership has threatened the bull case recently. The chart shows the relative strength of three defensive sectors – Health Care ($XLV), Utilities ($XLU), and Consumer Staples ($XLP) relative to the S&P 500 ($SPY).
- Utilities and Staples are the only positive sectors in Q2, gaining +8.6% and +1.7%. Utilities finally snapped a seven-day winning streak today, while Staples are just starting to break out.
- Despite their recent outperformance, Brian points out that defensive sectors are still trending lower relative to the S&P 500. Utilities are bouncing from an all-time low, while Staples are bouncing from a 24-year low (on a relative basis). Both ratios are approaching resistance from the 2021 low.
The takeaway: Defensive leadership has cast a bearish shadow on the broader market. However, at this point, it’s nothing more than a counter-trend rally within a long-term downtrend. Even a dead cat will bounce if it falls from a great enough height.
Quote of the Day
“We decided that systematic trading was best. Fundamental trading gave me ulcers.”
– Jim Simons (RIP)
Top Links
Stock Market Analysis May 10 2024 – Alphatrends
Brian Shannon reviews this week’s price action and some key levels to watch next week.
The Year of the Utes? – Bespoke
Bespoke looks at the recent outperformance from the Utilities sector.
Gold Miners Hit New 52-Week High – All Star Charts
JC Parets shares his thoughts on the current market environment.
Something Incredible is Happening in China – Macro Charts
MacroCharts outlines the bull case for China.
The Important Message From Not-So-Widely Followed Charts – Ciovacco Capital Management
Chris Ciovacco breaks down several noteworthy technical developments.
Top Tweets
Eight up days in a row for the Dow. pic.twitter.com/XaRsgV0mxT
— Eddy Elfenbein (@EddyElfenbein) May 10, 2024
While not quite a dime a dozen, seven (and eight) day winning streaks for the Dow aren’t uncommon.
Since last July alone, this is the 4th streak of 7+ days. pic.twitter.com/KBX6xfBUHJ
— Bespoke (@bespokeinvest) May 10, 2024
Long win streaks don’t happen in bear markets.
Or, usually, anywhere near a peak before the next one begins.
The Dow $DIA has shown some tendency to breathe after 7 up days when near a multi-year high, but those were just pauses that refreshed. pic.twitter.com/Rd0K9xsWCt
— Jason Goepfert (@jasongoepfert) May 10, 2024
Things you don’t say during bear markets… All-time highs… pic.twitter.com/p7UHIXqYn4
— Grant Hawkridge (@granthawkridge) May 10, 2024
BREAKING
: CBOE Volatility Index$VIX has now traded red or unchanged over the last 8 trading days, the longest such streak since 2015 pic.twitter.com/5CnRWInMWG
— Barchart (@Barchart) May 10, 2024
We are heading into the 20th week of the year next week.
This is the average $SPX and $VIX performance over that period averaging back 98 and 33 years respectively… pic.twitter.com/Xjlf7UHsOw
— John Kicklighter (@JohnKicklighter) May 10, 2024
307 trading days and counting since SPX’s last daily 2% drop. Last streak made it 351 trading days from September 2016 into February 2018. pic.twitter.com/Q9aqTiPETN
— Louis Spector, CMT (@EastCoastCharts) May 10, 2024
$XLP Staples – best weekly close since early 2022 pic.twitter.com/3PTEERWuqz
— Mike Zaccardi, CFA, CMT
(@MikeZaccardi) May 10, 2024
CONSUMER STAPLES and UTILITIES hit new 52-week highs this week and were the first sectors to do so in the last month or so…
Sound BEARISH?
It has only happened ONCE before and here is what happened next… (via @bespokeinvest) pic.twitter.com/NBYEEkuSTu
— Enrique Abeyta (@enriqueabeyta) May 10, 2024
Prior resistance could be acting as support on energy here $XLE pic.twitter.com/zttGJVEB2t
— Michael Nauss, CMT, CAIA (@MichaelNaussCMT) May 10, 2024
Spread between @AAIISentiment bulls and bears has swung back (quite swiftly) into net positive territory as optimism returns pic.twitter.com/dz40MDRSGZ
— Liz Ann Sonders (@LizAnnSonders) May 10, 2024
The Water Resources ETF $PHO is posting new all-time highs. pic.twitter.com/oasDW8uWpI
— Ian Culley, CMT (@IanCulley) May 10, 2024
How do you know when a theme or sector is cooked?
When folk start launching ETFs.
Fund companies are always late, and always jumping on yesterday’s hot trend (easiest way to raise AUM)https://t.co/lJeXw6Dc0X pic.twitter.com/gNrmIG1kA7
— Callum Thomas (@Callum_Thomas) May 10, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Friday May 10, 2024 appeared first on The Chart Report.
