Daily Chart Report 📈 Monday, May 6, 2024
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Today’s Summary
Monday, May 6, 2024
Indices: Russell 2000 +1.23% | Nasdaq +1.13% | S&P 500 +1.03% | Dow +0.46%
Sectors: All 11 sectors closed higher for the second day in a row. Communications led, gaining +1.36%. Real Estate lagged but still closed positive +0.03%.
Commodities: Crude Oil futures rose +0.47% to $78.48 per barrel. Gold futures gained +0.98% to $2,331 per oz.
Currencies: The US Dollar Index was unchanged at $105.08.
Crypto: Bitcoin fell -1.34% to $63,164. Ethereum fell -2.37% to $3,063.
Volatility: The Volatility Index was unchanged at 13.48.
Interest Rates: The US 10-year Treasury yield closed lower for the fourth day, falling to 4.489%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
So far, in 2024:
US Dollar Index $DXY is up about 4%
US 10yr Yield $TNX has risen about 70bps
Despite higher rates and a strengthening dollar, the US stock market $SPX has gained about 8%
What do you think stocks will do if these intermarket headwinds abated…? pic.twitter.com/K4KUA6qonV
— Steven Strazza (@sstrazza) May 4, 2024
Today’s Chart of the Day was shared by Steve Strazza (@sstrazza).
- The US Dollar and the 10-year yield have been rising all year, and yet the S&P 500 is up +8.6% year-to-date.
- These two wrecking balls put significant pressure on the stock market in 2022. However, stocks have been more resilient these days.
- $DXY and $TNX have pulled back since mid-April, while stocks have rebounded nicely since then.
The takeaway: Stocks have been resilient this year despite higher yields and a rising dollar. If they continue to weaken, these two wrecking balls could fuel the next leg higher.
Quote of the Day
“Don’t worry about people stealing your ideas. If your ideas are any good, you’ll have to ram them down people’s throats.”
– Howard Aiken
Top Links
Back on Top – Trading Adventures
Andy Moss looks at how the major averages kicked off the week.
Typical May Up Early, Weak Middle, Strong Finish – Almanac Trader
Jeff Hirsch breaks down May seasonality.
Sentiment No Longer a Headwind – All Star Charts
JC Parets shares his read on market sentiment.
Non-Farm Price – The Weekly Trend
David Zarling and Ian McMillan discuss some of the most significant technical developments across the markets.
Top Tweets
SPX – best 3-day gain of the year. pic.twitter.com/2u4Otej8Yv
— Mike Zaccardi, CFA, CMT
(@MikeZaccardi) May 6, 2024
Nothing to see here yet, imo.
Breakout of the range, one way or the other, and then the show’s worth watching. $SPX
(Speaking of shows, A Man In Full is terrific!) pic.twitter.com/sPqEzvpDW8
— Steve Deppe, CMT (@SJD10304) May 6, 2024
Easy recovery for the S&P 500 $SPX – it has now reclaimed its 50D moving average pic.twitter.com/u4R7mrLE7Y
— Barchart (@Barchart) May 6, 2024
Such a simple, yet powerful chart from @bespokeinvest here.
The 200-day MA of the S&P 500 is at all-time highs and moving higher. Yes, we could peak tomorrow and crash like the Rich Dad Poor Dad guy keeps telling us, but this says that is a very low probability.
The overall… pic.twitter.com/QH6GFiRghU
— Ryan Detrick, CMT (@RyanDetrick) May 5, 2024
The Global 100 $IOO closed at a fresh all-time high today. This new high was accompanied by the largest 3-day rate of change since the thrust off the October low. pic.twitter.com/LsRcJykImx
— Sam Gatlin (@sam_gatlin) May 6, 2024
Optimism (bulls) has pulled back over the recent month… a reset? Which means sentiment is no longer a headwind… or do the bulls continue to exit? pic.twitter.com/hPgGo7xqCv
— Grant Hawkridge (@granthawkridge) May 6, 2024
NYSE % Advancers > 70% for three consecutive days, or what @fundstrat refers to as a “Triple 70”
Instances since 2018 noted below: pic.twitter.com/JWkVfmmYjn
— FinTwit_Bot (@BotFintwit) May 6, 2024
The UK has broken out to its highest level since 2018 pic.twitter.com/ui6Bvsb2Eg
— Scott Brown, CMT (@scottcharts) May 7, 2024
The interest rate outlook $Tnx is the key for additional follow through strength in the equity market. Next week we get inflation numbers. The softness in the labor job report on Friday contributed to the decline in the 10 year rate. The decline in rates created some synthetic… pic.twitter.com/64tKAgzgc3
— Roy Mattox (@RoyLMattox) May 6, 2024
3/ Bond seasonals turn positive in mid-May, providing an additional tailwind. H/t @JayKaeppel. pic.twitter.com/vAJybMOWSo
— Mark Ungewitter (@mark_ungewitter) May 6, 2024
$NVDA #NVDA What’s that saying?
Volume shelf turned… ? pic.twitter.com/gaNK6PONdq
— Jake Wujastyk (@Jake__Wujastyk) May 6, 2024
so $VVIX just made its lowest close in about 8 years pic.twitter.com/s2LRBFQhFo
— Swordfishvegetable (@Swordfishv44183) May 6, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Monday, May 6, 2024 appeared first on The Chart Report.
