Daily Chart Report 📈 Wednesday, March 27, 2024
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Today’s Summary
Wednesday, March 27, 2024
Indices: Russell 2000 +2.13% | Dow +1.22% | S&P 500 +0.86% | Nasdaq 100 +0.39%
Sectors: All 11 sectors closed higher. Utilities led, gaining +2.79%. Tech lagged, but still rose +0.51%.
Commodities: Crude Oil futures fell -0.33% to $81.35 per barrel. Gold futures rose +1.63% to an all-time high of $2,213 per oz.
Currencies: The US Dollar Index was unchanged at $104.30.
Crypto: Bitcoin fell -0.82% t0 $69,421. Ethereum dropped -2.47% to $3,499.
Volatility: The Volatility Index fell -3.48% to 12.77.
Interest Rates: The US 10-year Treasury yield fell to 4.192%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
This is the 10th week the S&P 500 weekly RSI has been above 70.
Takeaways:
1. “overbought” doesn’t mean it can’t stay that way for an extended period of time.
2. Since 1970, the market has been “overbought” twice as long in two prior instances. $SPX $SPY pic.twitter.com/MLwJkt0NX0— Andrew Thrasher, CMT (@AndrewThrasher) March 27, 2024
Today’s Chart of the Day was shared by Andrew Thrasher (@AndrewThrasher).
- The S&P 500 is gaining momentum, with weekly RSI at a four-year high of 78.8.
- Andrew points out that RSI has been “overbought” (above 70) for ten consecutive weeks — the longest streak in six years. The market rarely stays overbought this long, but previous extremes have lasted significantly longer.
- Overbought sounds bearish because it implies excessive or unsustainable buying. However, it just means that price is stronger than usual.
The takeaway: Legendary Technician Alan Shaw said it best — “The most bullish thing a market can do is get overbought and stay that way.”
Quote of the Day
“Trends are not endless. In fact, the greater the consensus belief in the persistence of a trend, the less likely it is to persist.”
– Arthur Zeikel
Top Links
S&P 500 Has Only Done This 14 Times Since 1950 – Schaeffer’s Investment Research
Rocky White examines how the S&P 500 has historically performed after being less than 3% below record highs for 70 consecutive days.
When These Levels Break, The S&P 500 Is Going To Explode Higher – StockCharts
Julius de Kempenaer analyzes recent sector rotation within the S&P 500.
S&P 500 Can Pull Back 7-8% and Still Keep the 6,100 Breakout Target: CappThesis’ Frank Cappelleri – CNBC
Frank Cappelleri discusses recent price action in the S&P 500, Bitcoin, and more.
3 Divergences To Watch – All Star Charts
JC Parets highlights three potentially bearish divergences.
Good Friday Boosts End Q1 But Weakness Q2 Start – Almanac Trader
Jeff Hirsch looks at how stocks have historically performed on the last trading day of Q1.
Top Tweets
Fantastic breadth today! +9:1 on Russell 3000 and on 88% up volume. At one point today, it looked like we were going to take a leg lower. Nice kicksave! $SPY $IWM $QQQ #technicalanalysis #investing #StockMarketToday pic.twitter.com/CCjvdiVrR3
— John Kolovos, CMT, CFA (@John_Kolovos) March 27, 2024
Best day of $SPX internals (90% up) of the week, month, quarter (and year), as Large Cap Tech lags…
Which means that the $RSP Eql Weight S&P 500 ETF did a lot better:
Up 1.6%, doubling the SPX’s move
— Frank Cappelleri (@FrankCappelleri) March 27, 2024
73.4% of $SPX members beat the index today as mega caps dragged the index lower. By grouping the S&P500 watchlist by market cap decile we see the largest 50 (median size $290B) was the lowest performing decile with +0.84% avg, vs +2.35% for the smallest 50 (median $9.8B). pic.twitter.com/8nRB8QSTUL
— Optuma (@Optuma) March 27, 2024
$IWM 2-year high pic.twitter.com/wdQPWQEQqn
— Mike Zaccardi, CFA, CMT
(@MikeZaccardi) March 27, 2024
#NQ, 1d
Nasdaq’s intraday range remains very low — Nasdaq moves on average 0.5% from open to close.
Intraday range used to be 1.5%-1.8% during 2022. pic.twitter.com/1z09ky8QQ4
— Yuriy Matso (@yuriymatso) March 27, 2024
Original Dow Theory vs Modern Dow Theory
Which one do you trust more? pic.twitter.com/Y7opgd5vRb
— Grant Hawkridge (@granthawkridge) March 27, 2024
S&P 500 is up 10% in the first 60 trading days of 2024, the 14th best start to a year going back to 1928. $SPX pic.twitter.com/It3BIAYmz0
— Charlie Bilello (@charliebilello) March 27, 2024
Gold now +$2,200
Too many people are convinced that gold cannot rally without a real rate tailwind.
Historically, when gold rises by 20% in a six-month period, 10-year TIPS fall by 25 bps on average.
And, there are many cases where real rates rise while gold rips. pic.twitter.com/nmImoBeJKe
— Warren Pies (@WarrenPies) March 27, 2024
This is one of the most important charts in the #commodity space.
The Silver-to-Gold miner ratio is the lowest it’s been since 2010.
The last time that happened?
Silver miners went on a face-ripping seven year rally.
Watch for a trend change.#gold #silver pic.twitter.com/A5pzmnpcth
— Brandon Beylo (@marketplunger1) March 27, 2024
$GE continues to outperform, +40% YTD, + upcoming spinoff. 200 the next key overhead level.
pic.twitter.com/VCZp9Negbr — Larry Tentarelli, Blue Chip Daily (@bluechipdaily) March 27, 2024
$GE Weekly RSI since 1962. pic.twitter.com/QvmwTgHs5V
— Arun S. Chopra CFA CMT
(@FusionptCapital) March 27, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Wednesday, March 27, 2024 appeared first on The Chart Report.
