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Today’s Summary
Tuesday, January 28th, 2020
Indices: US stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 187 points or 0.66%. The Nasdaq was the strongest of the major indices, gaining 1.43%, while the S&P 500 rallied 1.01%. The Russell 2000 rose by 0.86%.
Sectors: All 11 sectors closed higher. Technology led, gaining 1.91%. Consumer Staples lagged but still inched higher by 0.13%.
Commodities: Crude Oil futures moved higher by 1.36% to $53.55 per barrel. Gold futures fell 0.86% to $1,567 per ounce.
Currencies: The US Dollar Index was flat.
Interest Rates: The US 10-year Treasury yield moved higher to 1.661%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
When the $SPX has declined by at 2.25% over 2 days and then rallied by at least 1% the index was up 70% of the time two weeks later.
Results saw some new lows first but several instances of immediate continuation of the prior up trend. pic.twitter.com/ZwP9zWajv4
— Andrew Thrasher, CMT (@AndrewThrasher) January 28, 2020
Today’s Chart of the Day was shared on Twitter by Andrew Thrasher (@AndrewThrasher). It’s a chart of the S&P 500 since the Great Financial Crisis low in 2009. The green vertical lines represent all the instances where $SPX fell 2.25% or more over two days and then rallied at least 1% the next day, as it did over the past three sessions. Andrew found that the index was historically up 70% of the time in the two weeks following this pattern of price action. He adds that “Results saw some lows first but several instances of immediate continuation of the prior trend.” The slight pullback between Friday and Monday certainly felt jarring due to the lack of volatility over the past few months. However, if history is any guide, it’s not only possible but likely that the S&P 500 will continue higher following this sort of price action.
Quote of the Day
“When I have to depend upon hope in a trade, I get out of it.”
– Jesse Livermore (Trader)
Top Links
A Non-Random Walk With Small-Caps – All Star Charts
JC Parets breaks down a chart of the Small-cap Russell 2000 ETF, $IWM. He emphasizes the importance of the $169 level in this ETF.
Piper Sandler’s Johnson Expects a Deeper Pullback in Tech Stocks – Bloomberg
Craig Johnson of Piper Sandler made an appearance on Bloomberg yesterday to share his outlook on Technology stocks.
Midweek Stock Market Recap and Technical Analysis – The Trade Risk
In this video, Evan Medeiros recaps the recent price action across the major indices and highlights a few charts that are worth keeping an eye on.
A Different Look at the Hindenburg Omen – TraderFeed
Dr. Brett Steenbarger examines the Hindenburg Omen that triggered yesterday, and what it suggests about market breadth right now.
‘This is the Signal’: Emerging Markets Flash Buying Opportunity Amid Broad Market Declines, Says Trader – CNBC
Ari Wald of Oppenheimer and Quint Tatro of Joule Financial discuss the VIX, Emerging Markets, and Chinese technology stocks.
Top 10 Tweets
if this is it for the market "correction", then it's the second one in as many months that lasted all of two days. btfd remains in play, as of now. $SPY #stocks pic.twitter.com/443P91qgnu
— P.J. Jensen (@pjj16) January 28, 2020
The "Easy Streak" has finally ended.
Stocks went a massive *74 days* without a 1% decline, tied for 4th longest in 20+ years (Oct 9 2018).
Remember what I wrote – history was not kind to Stocks after things got this easy. Remain on high alert in coming weeks.$SPX $SPY $ES_F pic.twitter.com/9HH2Dmex45
— Macro Charts (@MacroCharts) January 28, 2020
Ratio of US Stocks to the rest of the World hitting another all-time high today. Returns since inception of MSCI World ex-US ETF in March 2008…
S&P 500: +209%
MSCI World ex-US: +29% pic.twitter.com/0H9UM9f7VB— Charlie Bilello (@charliebilello) January 28, 2020
Sharp one day declines while in an uptrend are more often than not buyable events for the Semiconductors. Chart via @verrone_chris @Todd_Sohn pic.twitter.com/2ec5DoV8si
— Strategas (@StrategasRP) January 28, 2020
Commodities (in the form of $GCC) now oversold and nearing a confluence of support from the 200-day MA and 50% Fibonacci level. Would expect a bounce similar to May and Aug 2018. The fact that RSI is so low suggests more of a bearish LT configuration! pic.twitter.com/pDVs0QsU2m
— David Keller, CMT (@DKellerCMT) January 28, 2020
WTI was -20.6% from the Jan 7 high at the lowest yesterday. $CL_F $USO pic.twitter.com/gWOH1coW5d
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) January 28, 2020
Copper/Gold still pointing at lower US 10Y pic.twitter.com/z4YmiGgPeC
— ? I. Vodenitcharov CFA CMT (@iv_technicals) January 28, 2020
Bonds start a seasonal down window Jan 31… pic.twitter.com/TtTjNBRfnC
— Linda Raschke (@LindaRaschke) January 28, 2020
Russia's $GOOGL testing all time highs…$YNDX $RSX pic.twitter.com/nGx9KOfTzo
— J4 (@J4_fibo) January 27, 2020
Gold buyers lose their password today? pic.twitter.com/ltE47H6Ted
— UPBOptionMil (@UPBOptionMil) January 28, 2020