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Todayβs Summary
Wednesday, January 24, 2024
Indices: Nasdaq 100 +0.55% | S&P500 +0.08% | Dow -0.26% | Russell 2000 -0.73%
Sectors: 4 of the 11 sectors closed higher. Energy led, gaining +1.43%. Real Estate lagged, falling -1.37%.
Commodities: Crude Oil futures rose +0.97% to $75.09 per barrel. Gold futures fell -0.48% to $2,016 per oz.
Currencies: The US Dollar Index fell β0.27% to $103.25.
Crypto: Bitcoin rose +0.52% to $40,074. Ethereum fell -0.32% to $2,234.
Volatility: The Volatility Index rose +4.70% to 13.13.
Interest Rates: The US 10-year Treasury yield rose to 4.180%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Don't shoot the messenger, but the break above the late 2021 highs targets 5400-5600 for the S&P 500 in the coming months, depending on where you want to position your Fibs. $SPX $SPY $ES_F pic.twitter.com/wGPx5m89K6
— Ian McMillan, CMT (@the_chart_life) January 24, 2024
π Todayβs Chart of the Day was shared by Ian McMillan (@the_chart_life).
- The S&P 500 closed at record highs for the 4th consecutive day, marking the longest streak of record highs since November 2021.
- When price is in uncharted territory like this, technicians often use Fibonacci extensions to establish potential resistance levels or targets. For whatever reason, these levels often coincide with significant turning points.
- Ian points out that the 161.8% extension of the 2022 decline is between 5,400 and 5,600, which is more than +10% higher. In another comment, Ian explained, βNow, will it move in a straight line? I highly doubt it. But it is a target nonetheless.β
The takeaway: If the current breakout holds, the S&P 500 could rally double digits before encountering Fibonacci resistance.
Quote of the Day
βIn price, thereβs knowledge.β
β Alan Shaw (R.I.P.)
Top Links
Nonstop Nasdaq β Bespoke
Bespoke highlights the continued strength in the Nasdaq 100.
When to Buy Stocks After a Fresh SPX Record β Schaefferβs Investment Research
Rocky White examines how the S&P 500 has historically performed after reaching record highs.
Rallies vs. Drawdowns β CappThesis
Frank Cappelleri analyzes the recent price action in the S&P 500.
Typical February Performance: Weakness After Mid-Month Peak β Almanac Trader
Jeff Hirsch looks at how the major averages have historically performed throughout February.
The Godfathers of Technical Analysis (w/ Ralph Acampora & Alan Shaw) β Real Vision
One of the most influential technicians, Alan Shaw, passed away this week. Hereβs a great conversation between him and Ralph Acampora on the evolution of modern Technical Analysis.
Top Tweets
The S&P 500 closed at an all-time high for the 4th day in a row. The last time that happened was in November 2021. $SPX pic.twitter.com/F3gLVJZb0C
— Charlie Bilello (@charliebilello) January 24, 2024
Only 132 (26%) stocks beat the $SPX today, with fewer (25%) out-performing YTD: pic.twitter.com/1PYMLjboHl
— Optuma (@Optuma) January 24, 2024
Stock performance this year:
The further you go down the market cap ladder this year, the worse the performance. pic.twitter.com/C6gAC1vyYZ— Bespoke (@bespokeinvest) January 24, 2024
Semis index influence at a new high… up from 2% a decade ago, and easily the largest gain for an industry group. pic.twitter.com/AO9Vcosfgy
— Todd Sohn (@Todd_Sohn) January 24, 2024
The biggest lie you've been told about the stock market is to buy low & sell high.
History shows that buying high β especially at the highest prices ever β has lead to better returns over time if you're willing to S&P and chill for a while. pic.twitter.com/WOsEa9A3bI
— Callie Cox (@callieabost) January 24, 2024
Should You Buy An All-Time Highs?
Buying near all-time highs should not be a cause for concern. History shows that all-time highs tend to follow all-time highs. pic.twitter.com/zX6Tknfsu6
— George Maroudas (@ChicagoAdvisor) January 24, 2024
In bear markets these lines go up pic.twitter.com/U753YWZlPf
— J.C. Parets (@allstarcharts) January 24, 2024
20% gains in pre-election years rarely do little to slow down the bulls in an election year.
In fact, the S&P 500 has never been lower the year after a 20% gain in a pre-election year.
Another clue '24 will likely see solid gains.
Thanks @SethCL for the idea. pic.twitter.com/TBKg6y4qx2
— Ryan Detrick, CMT (@RyanDetrick) January 24, 2024
Japanese (Nikkei) stocks on the verge of making highs that still exist from the 1980s and at 34-year highs…
Japanese Yen making 34-year lows and the polar opposite… pic.twitter.com/SPaTJC0Rr4
— David Cox, CMT, CFA (@DavidCoxRJ) January 24, 2024
"Buy the rumor, sell the news" is playing out pretty much exactly as you'd expect with #Bitcoin. Momentum now more bearish than bullish with RSI below 50. Downside objective around 34K which based on 61.8% Fibonacci retracement also the 200-day moving average. pic.twitter.com/GW4BUy8RfA
— David Keller, CMT (@DKellerCMT) January 24, 2024
Will they circle back and pick $TSLA up after earnings today? π€ pic.twitter.com/qllyHskEcr
— TrendSpider (@TrendSpider) January 24, 2024