Daily Chart Report 📈 Tuesday May 7, 2024
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Today’s Summary
Tuesday, May 7, 2024
Indices: Russell 2000 +0.19% | S&P 500 +0.13% | Dow +0.08% | Nasdaq -0.01%
Sectors: 8 of the 11 sectors closed higher. Materials led, gaining +1.19%. Consumer Discretionary lagged, falling -0.72%.
Commodities: Crude Oil futures inched lower by -0.13% to $78.38 per barrel. Gold futures fell -0.30% to $2,324 per oz.
Currencies: The US Dollar Index rose +0.28% $105.38.
Crypto: Bitcoin fell -1.34% to $62,320. Ethereum fell -1.84% to $3,006.
Volatility: The Volatility Index fell -1.93% to 13.22.
Interest Rates: The US 10-year Treasury yield closed lower for the fifth day, falling to 4.459%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Stocks in Hong Kong pulled back a bit today.
But over the previous 10 days, more than 3 stocks advanced for every 1 that declined.
Every time that’s happened since 1997, it ended a bear market. pic.twitter.com/ZZFkmHj1Dz
— Jason Goepfert (@jasongoepfert) May 7, 2024
Today’s Chart of the Day was shared by Jason Goepfert (@jasongoepfert).
- China has seen a sharp rebound over the past two weeks. The Hang Seng Index finally cooled off today after surging +14.5% in just 10 days. Jason points out that breadth is also thrusting in addition to this momentum thrust.
- The 10-day Advance/Decline Ratio spiked above three for the first time since 2016. That’s only happened four other times since 1997, and all four took place in the early stages of a multi-year rally.
- China also looks bullish from a contrarian perspective. According to @MacroCharts, short interest on the Large-Cap China ETF ($FXI) recently hit 50%. While that figure has come down, it remains significantly elevated.
Takeaway: China is exhibiting the telltale signs of a bottom. Breadth and momentum are thrusting, while sentiment remains aggressively bearish
Quote of the Day
“One of the very nice things about investing in the stock market is that you learn about all different aspects of the economy. It’s your window into a very large world.”
– Ron Chernow
Top Links
Six Reasons This Bull Market Is Alive and Well – Carson Research
Ryan Detrick highlights six bullish developments.
The Best Stock Market Run of 2024 – CappThesis
Frank Cappelleri analyzes the recent price action in the S&P 500.
Strategas’ Chris Verrone Expects New Market Highs This Summer – CNBC
Chris Verrone offers his perspective on the current market environment.
When Bullish April Is Down Stocks Often Struggle Until Q4 – Almanac Trader
Jeff Hirsch looks at how the S&P 500 has historically performed after falling in April.
Small-caps do NOT matter – All Star Charts
JC shares his thoughts on Small Caps and their lack of participation.
Top Tweets
heyo… we had a thrust trigger…
Triple 70 Thrust
The Triple 70 Thrust indicator is triggered when the percentage of rising stocks in the market exceeds 70% for three consecutive days. pic.twitter.com/etdxgtTUb5
— Grant Hawkridge (@granthawkridge) May 7, 2024
Technicals paint a positive picture for the S&P 500, which is now above the 50d MA, the 61.8% retracement level, and sits at another key level. With RSI still not indicating overbought conditions, a close above 5200 would leave little in the way of all-time highs. pic.twitter.com/tohwzgXw3b
— Liz Young (@LizYoungStrat) May 7, 2024
5200 gap fill $SPX – correction to continue? pic.twitter.com/5BZNIx6ESo
— Jamie Saettele, CMT (@JamieSaettele) May 7, 2024
That $QQQ gap at 427.81 is still open… pic.twitter.com/2EvOL8ECXR
— Walter Deemer (@WalterDeemer) May 7, 2024
Consumer Staples $XLP and Utilities $XLU are the first two sectors to make it back to 52-week highs: pic.twitter.com/vUWNEUKICi
— Bespoke (@bespokeinvest) May 7, 2024
Even foreign stocks $VEU – best 4-day rally in 6 months
Few talk about breadth from the perspective of ex-US stock participation, but this is solid. pic.twitter.com/dmc7XuZ8P1
— Mike Zaccardi, CFA, CMT
(@MikeZaccardi) May 7, 2024
China Shorts are “ALL-IN”.
Bull Markets are born on pessimism. pic.twitter.com/eCaaT53jVL
— Macro Charts (@MacroCharts) May 7, 2024
China’s CSI 300 Index is nearing a Golden Cross formation pic.twitter.com/MCAWnYVlAK
— Barchart (@Barchart) May 7, 2024
Strongest ETFs so far this decade. pic.twitter.com/AhwkSghPnO
— Brian G (@alphacharts) May 6, 2024
Despite the recent weakness in the US dollar, the YTD trend is higher.
The US Dollar index $DXY bouncing off a rising 50-day average today. A rising dollar has been a headwind for crypto and equity markets. pic.twitter.com/4ukKx2IeP9
— Louis Sykes (@haumicharts) May 7, 2024
All eyes on the 4.44% level in the benchmark 10yr Treasury bond.
Watch the 10yr Bond Auction tomorrow at 1:00pm ET – in a quiet week for US data and earnings, it’s one of the biggest US event risks this week. pic.twitter.com/XGHAboRy0u
— Matt Weller CFA, CMT (@MWellerFX) May 7, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Tuesday May 7, 2024 appeared first on The Chart Report.
