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Today’s Summary
Monday, January 24th, 2022
Indices: Dow +0.29% | S&P 500 +0.28% | Nasdaq +0.63% | Russell 2000 +2.29%
Sectors: 8 of the 11 sectors closed higher. Consumer Discretionary led, gaining 1.20%. Utilities lagged, falling 0.96%.
Commodities: Crude Oil futures dropped 2.15% $83.31 per barrel. Gold futures rose 0.54% to $1,842 per ounce.
Currencies: The US Dollar Index rose 0.24%.
Interest Rates: The US 10-year Treasury yield rose to 1.774%
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
S&P 500 w/ one hell of a stiff arm off the 4230 level ? $SPX pic.twitter.com/hVsVKnjIyu
— Grayson Roze (@GraysonRoze) January 24, 2022
Today’s Chart of the Day was shared by Grayson Roze (@GraysonRoze). It’s a daily candlestick chart of the S&P 500 over the past year. What a day! The S&P 500 was down nearly 4% at one point, briefly dipping into correction territory. However, buyers stepped in, and we actually managed to close positive by 0.28%. This was the largest intraday reversal that we’ve seen in nearly two years. As you can see, today’s price action formed a bullish hammer candle with a long lower wick. Hammer candles are often found at the end of sharp declines, and typically mark some sort of short-term bullish reversal. It’s often said that hammer candles help to “nail in” a market bottom. The low of today’s wick, around 4230, now offers a clear risk level to trade against. Watch for continued upside follow-through tomorrow to confirm today’s bullish hammer candle.
Quote of the Day
Top Links
Do Less or Do More – The Irrelevant Investor
Michael Batnick shares some thoughts on today’s intraday reversal.
There’s Always a Bull Market Somewhere – Means to a Trend
Austin Harrison takes a look at the recent weakness in Stocks and the strength in Commodities.
The Nasdaq is Poised for an Oversold Bounce After 15% Decline, But Investors Shouldn’t Buy it, Fairlead’s Stockton Says – Business Insider
Katie Stockton lays out her near-term outlook for the Nasdaq.
Major Stock Market Indices Reach Critical Impasse! – Kimble Charting Solutions
Chris Kimble points out that the Dow Industrials, Dow Transports, Dow Utilities, and NYSE Composite are all testing long-term resistance.
What are the Worst Ones Doing? 2022 Edition – All Star Charts
JC Parets examines some of the weakest areas of the market including Biotech, Chinese Internet, $ARKK, and IPO Stocks.
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Top Tweets
First time the Dow has reversed a 1,000+ point drop to close higher on the day.
— Bespoke (@bespokeinvest) January 24, 2022
Intraday gains for the major U.S. indexes from the daily lows into the close:
Dow Jones $DJX +3.7%
S&P 500 $SPX +4.5%
Nasdaq-100 $NDX +5.8%
Russell 2000 $RUT +5.3%…
What. A. Day.
— Caleb Franzen (@CalebFranzen) January 24, 2022
The S&P 500 rallied 4.4% from its low of the day (4222) to the close (4410).
That's the largest intraday rally (from low to close) we've seen in the index since March 26, 2020.$SPX
data via @ycharts pic.twitter.com/LC3AIuhQPv
— Charlie Bilello (@charliebilello) January 24, 2022
NASDAQ 100 is having its worst month since October 2008
[Past performance is no guarantee of future results] pic.twitter.com/1bfINUpmLr— Liz Ann Sonders (@LizAnnSonders) January 24, 2022
$QQQ going to be the heaviest volume day since Aug. 5th, 2011, but on a notional basis looking like the highest ever at over $60bn pic.twitter.com/6zb3KWz6Ov
— Jonathan Krinsky,CMT (@jkrinskypga) January 24, 2022
Here are all the times IWM was down >2.5% intraday and finished up 1%.
Has happened near or at bottoms, but also near tops. In other words, ¯_(ツ)_/¯ pic.twitter.com/87yHn08ygj
— Michael Batnick (@michaelbatnick) January 24, 2022
5-day equity put/call ratio at level not seen since May 2020.
It's high relative to what has been seen since COVID crash, but not extreme relative to pre-COVID levels. pic.twitter.com/RgQidcILVF
— Willie Delwiche, CMT, CFA (@WillieDelwiche) January 24, 2022
Major flush for ARK today?
13% off the lows (most ever) and all-time high volume.
Sentiment lately been about as low as it can get as well. pic.twitter.com/eqjmhcv1w6
— Ryan Detrick, CMT (@RyanDetrick) January 24, 2022
Bitcoin potentially (key word) finding some short-term (also a key word) support here at the AVWAPs off the 9/2020 lows (prior to last bull rally). We did find (decent) support here over the summer, but it took a while to play out. TBD what happens this time around. $BTCUSD pic.twitter.com/6hXZFZepgJ
— Ian McMillan, CMT (@the_chart_life) January 24, 2022
It’s Hammer Time pic.twitter.com/OxgDtr9HRQ
— Steven Goldstein (@AlphaMind101) January 24, 2022
You’re all caught up now. Thanks for reading!