Daily Chart Report 📈 Wednesday, May 29, 2024
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Today’s Summary
Wednesday, May 29, 2024
Indices: Nasdaq -0.70% | S&P 500 -0.74% | Dow -1.06% | Russell 2000 -1.48%
Sectors: All 11 sectors closed lower. Communications led, but still fell -0.53%. Energy lagged, falling -1.77%.
Commodities: Crude Oil futures fell -0.75% to $79.23 per barrel. Gold futures dropped -0.65% to $2,341 per oz.
Currencies: The US Dollar Index rose +0.48% to $105.12.
Crypto: Bitcoin fell -1.12% to $67,564. Ethereum dropped -2.04% to $3,762.
Volatility: The Volatility Index gained +10.53% to 14.27.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
You can see the Bearish Divergence on % Stocks > 200 SMA was happening then and is also happening now, as well. pic.twitter.com/qh03080JmN
— Jay R. Ligon (@TheeDisruptor) May 29, 2024
Today’s Chart of the Day was shared by Jay Ligon (@TheeDisruptor).
- The S&P 500 is only -1.0% off all-time highs, and yet it’s skating on thin ice as it tests the March highs. Closing below would qualify as a Failed Breakout.
- The recent strength from $NVDA and other Mega-Cap stocks has masked some of the weakness beneath the surface of the S&P 500.
- While the index reached all-time highs in May, fewer members were above their 200-day moving averages. The percentage of stocks above their 20-day and 50-day moving averages has also been diverging.
The takeaway: The S&P 500 is still +10% above its 200-day moving average, but the index is testing a critical level, while breadth has been deteriorating and diverging for several weeks.
Quote of the Day
“A group of people who think differently is a market.
A group of people who think alike is a mob.”
– Naval
Top Links
June Almanac: Third Best S&P 500 Month in Election Years – Almanac Trader
Jeff Hirsch examines how stocks have historically performed in June.
A Tale of Two Indices – Bespoke
Bespoke looks at the dispersion between the S&P 500 and the Dow.
Understanding Dow Theory Signals for the Current Market – See it Market
David Keller discusses Dow Theory and and what it suggests about the current market right now.
Bonds are Still Crashing – All Star Charts
JC Parets highlights some noteworthy technical developments.
Top Tweets
$SPY – Holding on. pic.twitter.com/Xiqnx1Aaz7
— Larry Thompson (@HostileCharts) May 29, 2024
The NYSE high-low is already below 0, even though the S&P is just a few days removed from an all-time high. pic.twitter.com/4wmrLFeG1I
— JasonLeavitt (@JasonLeavitt) May 29, 2024
The S&P 500 and the Dow used to track each other closely. Not anymore. pic.twitter.com/hWrybUiOel
— Bespoke (@bespokeinvest) May 29, 2024
Fresh all-time highs for the Nasdaq 100 $QQQ relative to the DJ Industrial Average $DIA. pic.twitter.com/4LrveZ2tKs
— Sam Gatlin (@sam_gatlin) May 29, 2024
$QQQ / $IWM – white line$TNX 10yr Yields – yellow line pic.twitter.com/iQh6gH6j15
— Christian Fromhertz
(@cfromhertz) May 29, 2024
Look at Consumer Discretionary hitting new 10-year lows relative to the S&P 500. Do you think it finds support at current levels or completely falls apart? pic.twitter.com/wSwH0HODLc
— Alfonso Depablos, CMT (@AlfCharts) May 29, 2024
We are in year 4 of the Presidential cycle, and that year tends to be strong, especially when it follows a down mid-term year. The market has closely followed this “down mid-term” cycle.
pic.twitter.com/B64SvomPrZ
— Jurrien Timmer (@TimmerFidelity) May 29, 2024
One key tenet of Dow Theory is that the averages must confirm each other. Given the lack of confirmation from the TRAN index, and diverging paths between the two indexes, the recent breakout to new highs on the INDU remains suspect and subject to some potential downside risk. pic.twitter.com/l1qy5dQrjN
— Adam Turnquist, CMT (@adam_turnquist) May 29, 2024
The S&P 500 is up about 5% in May with two full days to go. I’m probably jinxing it, but here goes.
After a 5% gain in May, June has been higher 5 out of 6 times and the past three times the rest of the year added at least double digits. pic.twitter.com/TKx7TJmZza
— Ryan Detrick, CMT (@RyanDetrick) May 29, 2024
Yesterday, we saw a BIG jump in $SKEW (blue arrow) which has been rising at a fast rate lately (orange arrow) pic.twitter.com/8WR6etnVd5
— David Settle, CMT (@davidsettle42) May 29, 2024
The spread between SKEW and $VIX is getting pretty wide which has often resulted in a move higher in volatility, but this condition can persist for an extended period, as we saw in 2017. pic.twitter.com/dMCezFMStj
— Andrew Thrasher, CMT (@AndrewThrasher) May 29, 2024
$DXY holds its rate of trend and gets a second bounce off the 200 day MA. Peeking its head back above 105… pic.twitter.com/FTx1frpOkh
— Ian McMillan, CMT (@the_chart_life) May 29, 2024
The best long-term correlation that I’ve found for #Bitcoin
$BTCUSD
Micron Technologies $MU
Logically, it makes sense why #BTC would be tightly correlated with a semiconductor stock, but none of the other semis come close to $MU‘s correlation.$MU currently at ATH’s. pic.twitter.com/gW761323d4
— Caleb Franzen (@CalebFranzen) May 29, 2024
1-year returns:$NVDA +192%$LLY +92%$ANF +503%$GPS +165% pic.twitter.com/NR35BXV67p
— Mike Zaccardi, CFA, CMT
(@MikeZaccardi) May 29, 2024
$ANF making $NVDA shareholders look poor pic.twitter.com/5B8rwUqZYW
— Conor Mac (@InvestmentTalkk) May 29, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Wednesday, May 29, 2024 appeared first on The Chart Report.
