Daily Chart Report 📈 Wednesday, July 10, 2024
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Today’s Summary
Wednesday, July 10, 2024
Indices: Russell 2000 +1.10% | Nasdaq +1.09% | Dow +1.09% | S&P 500 +1.02%
Sectors: All 11 sectors closed higher. Technology led, gaining +1.45%. Financials lagged but still rose +0.38%.
Commodities: Crude Oil futures rose +0.85% to $82.10 per barrel. Gold futures rose +0.50% to $2,380 per oz.
Currencies: The US Dollar Index fell -0.13% to $104.98.
Crypto: Bitcoin fell -0.52% to $57,733. Ethereum rose +1.17% to $3,103.
Volatility: The Volatility Index rose +2.72% to 12.84.
Interest Rates: The US 10-year Treasury yield fell to 4.288%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Home Construction is one to watch right now
Here’s $ITB bouncing off support at the bottom of a 7-month consolidation range, which just so happens to line up perfectly with the 200-day Moving Average. pic.twitter.com/4NwMZdpTj2
— Grayson Roze (@GraysonRoze) July 10, 2024
Today’s Chart of the Day was shared by Grayson Roze (@GraysonRoze).
- Homebuilders and semiconductors led us into the bull market last year. While everyone was worried about a recession, these economically sensitive groups were hitting new highs, suggesting the economy was fine. However, the homies are currently at a critical juncture after stalling all year.
- The Home Construction ETF ($ITB) has spent the past week testing the neckline of a six-month Head & Shoulders Top, around $97. Grayson points out that this level coincides with its rising 200-DMA.
- Breaking this confluence of support would signal further downside for $ITB and the broader market. On the other hand, if bears can’t break the homies here, we could see a sharp rebound, as this would mark a Failed Top.
The takeaway: Homebuilders ($ITB) are testing the neckline of a six-month topping pattern, but if this bearish pattern fails, it will likely be bullish for $ITB and the broader market.
Quote of the Day
“Markets trend only about 15% of the time; the rest of the time they move sideways.”
– Paul Tudor Jones
Top Links
When to Expect S&P 500 Underperformance – Schaeffer’s Investment Research
Rocky White examines how the S&P 500 has historically performed after reaching various RSI levels.
Stock Market Analysis July 10, 2024 – Alphatrends
Brian Shannon breaks down recent price action and some key levels to watch in the near term.
No, It’s NOT just Large-cap Tech – All Star Charts
JC Parets points out that Small-Cap Tech ($PSCT) is shaping up for a potential leg higher.
Soaring NASDAQ Approaching End of Midyear Rally – Almanac Trader
Jeff Hirsch points out that a seasonal tailwind will end in a few days.
Top Tweets
$SPY up 7 sessions in a row.
But just +3.1% in that stretch. pic.twitter.com/lCDxTlewtG
— Mike Zaccardi, CFA, CMT
(@MikeZaccardi) July 10, 2024
The $SPX has now advanced for 7 straight days.
There have only been six other instances of 7 or more day consecutive rallies over the past five years.
I’d say the risk of any meaningful event risk surprise ahead (eg CPI) would be heavier on a ‘bearish’ outcome pic.twitter.com/vxPsEk0yn3
— John Kicklighter (@JohnKicklighter) July 10, 2024
It’s now been 37 weeks since $SPX bottomed and crossed back above its respective 200 day MA in late October 2023.
Since then, we’ve seen one of the strongest rallies in the history of the index. Truly a ‘once-in-a-decade’ event (on average) and a massive opportunity to grow… pic.twitter.com/0NfvS3Pvd6
— Ian McMillan, CMT (@the_chart_life) July 10, 2024
This is more of a “what if” than a market call
if the $SPY matches the last 2 legs higher in terms of points (113 avg) then 604 is upside level of interest
if it matches % wise (30%) then 642 is the level of interest above
my focus will be the same as if today is the high,… pic.twitter.com/mMoMDCbtNO
— Brian Shannon, CMT (@alphatrends) July 10, 2024
This continues to be a tale of two markets, with the mega growers breaking away from the pack to such a degree that it becomes nearly impossible for the rest of the market to keep up, let alone outperform. It’s making me rethink the bullish broadening thesis. Perhaps the… pic.twitter.com/awWNBHYw5S
— Jurrien Timmer (@TimmerFidelity) July 10, 2024
Hindenburg Omen has triggered… What are your thoughts? pic.twitter.com/3pKlBHziBa
— Grant Hawkridge (@granthawkridge) July 10, 2024
For only the 24th time since 1990, the Volatility Index (VIX) closed below 14 for 24 consecutive trading sessions. Comparable periods with low expected volatility were typically associated with bullish stock market trends. pic.twitter.com/tShrcqPWOk
— SentimenTrader (@sentimentrader) July 10, 2024
Crude oil $CL_F keeps bouncing like a pinball machine within this symmetrical triangle. pic.twitter.com/8y00y21oMq
— Ross J Brown (@RJB_Financial) July 10, 2024
Seasonality is NOT a roadmap. That said, it’s time to keep an eye open for weakness in the U.S. Dollar.@sentimentrader pic.twitter.com/643bs1xi1B
— Jay Kaeppel (@jaykaeppel) July 10, 2024
Tesla has been up for ten straight days in which it has rallied over 40% and increased its market cap by over $250 billion. $TSLA
If the streak reaches “11” will @elonmusk grow a Derek Smalls mustache? pic.twitter.com/02acOGoihW
— Bespoke (@bespokeinvest) July 10, 2024
The last 3 times $TSLA gained OVER 40% in just 11 trading sessions (orange arrows) – including late 2021
, it has not been good afterwards (blue arrows) pic.twitter.com/Tp0MLWM3Tg
— David Settle, CMT (@davidsettle42) July 10, 2024
EEM posting 52-week high. Relative strength, not so much. pic.twitter.com/Yuy0oMyho7
— Mark Ungewitter (@mark_ungewitter) July 10, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Wednesday, July 10, 2024 appeared first on The Chart Report.
