Daily Chart Report 📈 Tuesday, July 16, 2024
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Today’s Summary
Tuesday, July 16, 2024
Indices: Russell 2000 +3.50% | Dow +1.85% | S&P 500 +0.64% | Nasdaq +0.06%
Sectors: 6 of the 11 sectors closed higher. Energy led, gaining +1.51%. Utilities lagged, falling -2.43%.
Commodities: Crude Oil futures fell -1.40% to $80.76 per barrel. Gold futures rose +1.60% to an all-time high of $2,468 per oz.
Currencies: The US Dollar Index was unchanged at $104.24.
Crypto: Bitcoin rose +0.48% to $65,081. Ethereum fell -1.19% to $3,444.
Volatility: The Volatility Index rose +0.53% to 13.20.
Interest Rates: The US 10-year Treasury yield dropped to a four-month low of 4.160%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
History was made today.
The Russell 2000 closed 4.4 standard deviations above its 50-day moving average.
No other major US index (Dow since 1900, S&P 500 since 1928, and Nasdaq since 1971) has ever closed at that much of an extreme.
“Where were you when…” pic.twitter.com/gd67vSKZx1
— Bespoke (@bespokeinvest) July 16, 2024
Today’s Chart of the Day was shared by Bespoke (@bespokeinvest).
- The Russell 2000 gained another +3.5% today after gapping higher for the fifth consecutive day. This Small Cap index has added a whopping +11.5% since last Tuesday, marking the best five-day rally since April 2020.
- Bespoke points out that the Russell is 4.4 standard deviations above its 50-day moving average. None of the major indices have done this before (Dow, S&P, Nasdaq).
- The Russell is due for pause or pullback in the coming days, but this move was very constructive. The index could even reach all-time highs by year-end. It would need to gain +8% over the next five months, but that’s nothing considering the +11.5% rally over the past five days.
The Takeaway: The Russell 2000 is significantly extended after a historic five-day run, but all-time highs are suddenly within reach by year-end.
Quote of the Day
“If you want to be lucky, do your homework.”
– Jim Rogers
Top Links
This is Mid-Cycle Market Behavior – All Star Charts
JC Parets shares his thoughts on the recent expansion in the market.
Small and Mid Caps ‘Will Lead Second Half of the Year,’ Says Carson Group’s Ryan Detrick – CNBC
Ryan Detrick offers his outlook on stocks in the back half of the year.
Two Uptrends – Capp Thesis
Frank Cappelleri examines the recent patterns and price action in the S&P 500.
Top Tweets
$SPX $SPY – It’s comical how bullish the market is.
1.) S&P 500 ATHs
2.) Momentum (RSI) Confirmation 70+
3.) Breadth (A/D Line) Confirmation ATHsBut of course……….”I remain cautious” pic.twitter.com/6QeQIVrLRR
— Larry Thompson (@HostileCharts) July 16, 2024
Pretty rare to see $SPY with 8 straight gap up opens.
Even rarer to see it continually record new highs during that streak. pic.twitter.com/5HhXfF1RSy
— Jason Goepfert (@jasongoepfert) July 16, 2024
Financials, healthcare and industrials are making new all-time highs. That represents 32% of SPY, on a sector weight, and 201 stocks, or 40%, on a stock weighted basis. $XLF $XLV $XLI pic.twitter.com/rBuQ3iXVrB
— Larry Tentarelli, Blue Chip Daily (@bluechipdaily) July 16, 2024
If you’re one who appreciates the lost art of counting, that was just a new all-time high for the NYSE Advance-Decline Line pic.twitter.com/dUGzaFd3tu
— J.C. Parets (@allstarcharts) July 16, 2024
What is happening in the stock market right now is unprecedented.
Top chart is NYSE Composite Index
On the bottom chart, we just had a “bear market low” move… in the middle of a bull market.
Bull to expand
pic.twitter.com/DEXzI7CLM2
— Matt Cerminaro (@mattcerminaro) July 16, 2024
Rare small-cap action, last seen following 2016 election. pic.twitter.com/Tqp7UcjRoX
— Mark Ungewitter (@mark_ungewitter) July 16, 2024
$IWM 8% from an ATH
We should be there before the Fed decision on the 31st. pic.twitter.com/gQQsNNvnD1
— Mike Zaccardi, CFA, CMT
(@MikeZaccardi) July 16, 2024
The +9.8% return for small caps (Russell 2000) relative to large caps ( $SPX) is the best since 1987 pic.twitter.com/03vfRu2Nz0
— Matt Weller CFA, CMT (@MWellerFX) July 16, 2024
The move since October 2023 has been below average for small-caps… this is perhaps suggestive of room to run. pic.twitter.com/Vitp5arg3y
— Todd Sohn (@Todd_Sohn) July 16, 2024
It looks like we’re going to get a Whaley Breadth Thrust today. Those things ain’t supposed to happen at this stage of the game.
But — the weekly chart of the R2K looks like it’s just now breaking out of a two-year base — and that **is** when we’re supposed to get thrusts.… pic.twitter.com/YHGDhTkQvn
— Walter Deemer (@WalterDeemer) July 16, 2024
Whaley Breadth Thrust has been triggered.
The Whaley Breadth Thrust indicator is triggered when the number of five-day advancing stocks in the market exceeds the number of five-day declining stocks by about 3-to-1. pic.twitter.com/GhgwwJNjBx
— Grant Hawkridge (@granthawkridge) July 17, 2024
10-Year Treasury Yield drops to 4.17%, the lowest level in more than 4 months pic.twitter.com/lHp9Y6S57U
— Barchart (@Barchart) July 17, 2024
$SPX has gone 350 sessions through Monday without a drop of at least 2% — on pace for its best streak since the onset of the global financial crisis in 2007 if the index reaches 352 sessions by Wednesday’s close, via @TheTerminal in my Taking Stock column today pic.twitter.com/TxeME7Mec9
— Jessica Menton (@JessicaMenton) July 16, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Tuesday, July 16, 2024 appeared first on The Chart Report.
