Daily Chart Report 📈 Tuesday, July 23, 2024
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Today’s Summary
Tuesday, July 23, 2024
Indices: Russell 2000 +1.02% | Dow –0.14% | S&P 500 -0.16% | Nasdaq -0.35%
Sectors: 2 of the 11 sectors closed higher. Materials led, gaining +0.40%. Energy lagged, falling -1.59%.
Commodities: Crude Oil futures fell -1.84% to $76.96 per barrel. Gold futures rose +0.53% to $2,407 per oz.
Currencies: The US Dollar Index rose +0.18% to $104.47.
Crypto: Bitcoin dropped -2.39% to $65,944. Ethereum rose +1.21% to $3,484.
Volatility: The Volatility Index fell -1.28% to 14.71.
Interest Rates: The US 10-year Treasury yield was unchanged at 4.253%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Whether it lasts is an open question, but the combination of lower rates and higher earnings has to be a good thing for most stocks. My guess is that this one will have staying power. As the relative performance of the Russell 2000 shows below, it’s early days still. /END pic.twitter.com/ryqT9ahWjq
— Jurrien Timmer (@TimmerFidelity) July 23, 2024
Today’s Chart of the Day was shared by Jurrien Timmer (@TimmerFidelity).
- Small Caps are leading by a wide margin again this week. Over the past three weeks, the Russell 2000 has outpaced the S&P 500 by nearly +11%, marking the best three-week outperformance in more than two decades.
- Despite this historic move, Small Caps are still in a downtrend relative to Large Caps (blue). The sharp rebound over the past three weeks could still be a dead cat bounce for this ratio.
- If the ratio finally breaks out, Small Cap leadership will become much more pronounced and sustainable. Jurrien points out that the ratio has plenty of potential upside to recover once the trend reverses.
The Takeaway: Even after a historic rebound, Small Caps are still in a downtrend relative to Large Caps. Small Cap leadership will become more pronounced and sustainable if this relative trend breaks out.
Quote of the Day
“There is a time to go long,
a time to go short,
and a time to go fishing.”
– Jesse Livermore
Top Links
The Stock Market’s Response – Capp Thesis
Frank Cappelleri breaks down the recent price action and patterns in the S&P 500.
July Mid-Month Conference Call: 5 Key Takeaways – All Star Charts
The team at All Star Charts highlights five key charts to watch in the coming weeks.
A History Lesson – OptimistiCallie
Callie Cox looks at the drawbacks of historical analogs.
The Biggest Winners in the Stock Market – A Wealth of Common Sense
Ben Carlson shares a few stats and insights about the best-performing stocks of all time.
Top Tweets
The S&P 500 $SPX is holding its near-term bullish trend line for another day heading into $TSLA and $GOOG earnings after the bell.
Path of least resistance remains (barely) higher for now IMO pic.twitter.com/nfQ8t6mggK
— Matt Weller CFA, CMT (@MWellerFX) July 23, 2024
So many stocks, sectors and indexes have been correcting for 3-4 months already. Why should we now expect another correction to happen, if we literally just got one? https://t.co/Vnrs9JrONC pic.twitter.com/tf15xNG2iw
— J.C. Parets (@allstarcharts) July 23, 2024
$QQEW – Don’t like seeing a failed breakout here, let’s see if we can find support here. pic.twitter.com/kpj1bky6Q1
— Larry Thompson (@HostileCharts) July 23, 2024
It is worth watching Homebuilders to assess the health of the market. If there is real pain, you will see it in the homies. $XHB $SPY pic.twitter.com/ai8V9Mfkci
— Alfonso Depablos, CMT (@AlfCharts) July 23, 2024
Solid breakout in aerospace and defense sector $ITA pic.twitter.com/UXOW1Nviar
— Michael Nauss, CMT, CAIA (@MichaelNaussCMT) July 23, 2024
Aerospace & Defense ETF $ITA broke out to new all-time highs today.
+2.7% on heavy volume. pic.twitter.com/HqU974gOxF
— Justin Spittler (@JSpitTrades) July 23, 2024
Friends don’t let friends share average election year charts.
Here’s why:
2008 was an election year.
The S&P 500 fell 18% in October…but because banks were failing, not bc the election season was tense.
Strip out 2008 and the story changes dramatically.
Context matters. pic.twitter.com/rMWINvargC
— Callie Cox (@callieabost) July 23, 2024
One of those blue lines is just different pic.twitter.com/NW3yRDvEkR
— Grant Hawkridge (@granthawkridge) July 23, 2024
$DBC commodity ETF – fresh 4-month lows pic.twitter.com/24PRqpn8RN
— Mike Zaccardi, CFA, CMT
(@MikeZaccardi) July 23, 2024
BREAKING
: Dr. Copper
Copper on track for its 7th consecutive red day for the first time since January 2020 pic.twitter.com/Evm37RMnIo
— Barchart (@Barchart) July 23, 2024
The Ethereum/Bitcoin ratio just engulfed the prior three days as it failed to hold its breakdown.$ETHBTC pic.twitter.com/0k4yzZgxNg
— Louis Sykes (@haumicharts) July 24, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Tuesday, July 23, 2024 appeared first on The Chart Report.
