Daily Chart Report 📈 Monday, June 17, 2024
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Today’s Summary
Monday, June 17, 2024
Indices: Nasdaq +1.24% | Russell 2000 +0.79% | S&P 500 +0.77% | Dow +0.49%
Sectors: 8 of the 11 sectors closed higher. Consumer Discretionary led, rising +1.76%. Utilities lagged, falling -1.10%.
Commodities: Crude Oil futures rose +1.62% to $79.72 per barrel. Gold futures fell -0.86% to $2,329 per oz.
Currencies: The US Dollar Index fell –0.18% to $105.33.
Crypto: Bitcoin inched lower by -0.22% to $66,475. Ethereum dropped -3.09% to $3,510.
Volatility: The Volatility Index rose +0.71% to 12.74.
Interest Rates: The US 10-year Treasury yield rose to 4.281%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
RSI on $QQQ is on track to go above 82 for only the 7th time since inception.
Mixed as a short signal over the next month or so. Terrible (for shorts) after that. pic.twitter.com/MvqGzu3VTg
— Jason Goepfert (@jasongoepfert) June 17, 2024
Today’s Chart of the Day was shared by Jason Goepfert (@jasongoepfert).
- The Nasdaq 100 ($QQQ) has become extremely overbought as it continues to print record highs. The Relative Strength Index (RSI) reached its most overbought reading since 2018 today, closing at 81.5.
- Jason points out that RSI on $QQQ will likely hit 82 for the seventh time since inception. He suggests that it hasn’t paid to fade $QQQ after an extremely overbought reading.
- ‘Extremely Overbought’ might sound bearish, but it’s really not. It just means the underlying bid is unusually strong. That’s often a recipe for higher prices, not lower ones.
The takeaway: The Nasdaq 100 ($QQQ) hasn’t been this overbought since 2018, but that’s not necessarily bad. If anything, this is typical bull market behavior.
Quote of the Day
“Markets may initially trend for fundamental reasons, but prices overshoot by ludicrous amounts. At some point, prices go up today simply because they went up yesterday.”
– Michael Platt
Top Links
A View from the Floor with Jay Woods, CMT – Freedom Capital Markets
Jay Woods highlights several things to watch this week.
Market Concentration Could Be a Warning the Rally is Slowing: Carson Group’s Ryan Detrick – CNBC
Ryan Detrick discusses the potential threats to the current rally.
No New Highs. So What? – All Star Charts
JC Parets looks at the lack of participation within the market.
Arre Stocks Overdue for a Correction? – Ciovacco Capital Management
Chris Ciovacco examines the short-term and long-term trends in the market.
Top Tweets
With a green close today, that’ll be 30 ATHs for the S&P 500 in ’24.
Happened 20 other times and the finished the yr green each time (not all that surprising).
Avg return 19.6% and median return 19.5%. pic.twitter.com/XI24AZ6vM5
— Ryan Detrick, CMT (@RyanDetrick) June 17, 2024
The performance bifurcation between the mega caps and the everything else. pic.twitter.com/W63lLSO855
— Andrew Thrasher, CMT (@AndrewThrasher) June 17, 2024
$QQQ popping out of 3 ATR Keltner Channel. Unusual but I’m sure it’s fine. pic.twitter.com/pOL1f1jvlS
— Jim Carroll (@vixologist) June 17, 2024
One of these 50-DMA Spread charts is not like the others. pic.twitter.com/ZBM8A5GIQ8
— Bespoke (@bespokeinvest) June 17, 2024
Yo Value where you at? pic.twitter.com/KaJVTSjTRY
— J.C. Parets (@allstarcharts) June 17, 2024
We all know about the largest growth stocks. But growth outperforming value isn’t just an AAPL/MSFT/NVDA story pic.twitter.com/NuCYn9sWP1
— Scott Brown, CMT (@scottcharts) June 17, 2024
The market’s current breadth problems are very disturbing — but I was also very concerned about the breadth problems this past January, via tweets on Jan 19/21. That divergence, though, was resolved by Jan 29 via 5106 net advances; we need 4666 net advances to eliminate the… pic.twitter.com/QZMElU2oNy
— Walter Deemer (@WalterDeemer) June 17, 2024
Riddle me this…
Maybe there isn’t breadth divergences in the stock market…
and maybe it’s just a consolidation period?
Why do we compare it to the market cap weighted version of the S&P 500?
Shouldn’t we normalize the data?
What are your thoughts on this? pic.twitter.com/95H46q7ipM
— Grant Hawkridge (@granthawkridge) June 17, 2024
NYMEX Crude Oil continuous futures contract is trading b/w the Dec ’23 low AVWAP and the Apr ’24 high AVWAP. This range also represents a very well-tested trailing 1yr support/resistance zone. $CL_F $USO $CRB pic.twitter.com/mGzg1xwm6w
— Shane C. Murphy (@murphycharts) June 18, 2024
60/40, which died long ago, closed at an all-time high (total return) $AOR pic.twitter.com/F6AsYmYg2D
— Mike Zaccardi, CFA, CMT
(@MikeZaccardi) June 17, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Monday, June 17, 2024 appeared first on The Chart Report.
