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Today’s Summary
Tuesday, February 7th, 2023
Indices: Nasdaq 100 +2.12% | S&P 500 +1.29% | Dow +0.78% | Russell 2000 +0.76%
Sectors: 8 of the 11 sectors closed higher. Energy led rising +3.25%. Consumer Staples lagged falling -0.42%.
Commodities: Crude Oil futures gained +4.09% to $77.14 per barrel. Gold futures rose +0.28% to $1,885 per ounce.
Currencies: The US Dollar Index fell -0.28% to $103.34.
Crypto: Bitcoin gained +2.15% to $23,252. Ethereum rose +3.57% to $1,672.
Interest Rates: The US 10-year Treasury yield rose to 3.677%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$SPX $SPY daily…
1) Price has been holding above the10-ema
2) 10-ma has been holding above the 20
3) 20-ma holding above 50
4) All MAs upward slopingThis is an up-trending market where price tends to draw in more buyers because of persistent strength. pic.twitter.com/uIxBYWjo5L
— Jonathan Harrier, CMT (@jonathanharrier) February 7, 2023
Today’s Chart of the Day was shared by Jonathan Harrier (@jonathanharrier). It was a choppy day, but the S&P 500 managed to close higher by 1.29%. Jonathan points out that the short-term trend continues to point higher. Price is above the 10, 20, and 50-day exponential moving averages, and all three are sloping higher. To be fair, the 200-day moving average (not shown) is still sloping lower, but it’s beginning to flatten out. The long-term trend can’t turn higher until the short-term trend does. It’s a process, but it’s playing out in favor of the bulls.
Quote of the Day
“Markets trend only about 15% of the time; the rest of the time they move sideways”
– Paul Tudor Jones
Top Links
Five Clues This Isn’t Just a Bear Market Rally – Carson Research
Ryan Detrick highlights five reasons why we may be in a new bull market.
Credit is Fine. What’s the Problem? – All Star Charts
JC Parets points out that credit spreads are confirming the strength in stocks.
Nasdaq Composite Rally Starts From Important Trend Line Support! – Kimble Charting Solutions
Chirs Kimble breaks down a long-term chart of the Nasdaq Composite.
New Dow Theory Declares Bullish Phase – StockCharts.com
David Keller examines what modern Dow Theory is suggesting right now.
People All Over AI – Bespoke
Bespoke takes a look at the explosive interest in Artificial Intelligence.
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Top Tweets
Final heat map of the S&P 500's $SPY performance from today pic.twitter.com/UoQlm8K2IU
— StockMKTNewz – Evan (@StockMKTNewz) February 7, 2023
Nasdaq 100 $QQQ intraday swings today:
1.74% gain from 12:30 to 1 PM
2.34% decline from 1 to 1:35 PM
2.47% gain from 1:35 to 4 PM pic.twitter.com/l28xKG4i8D— Bespoke (@bespokeinvest) February 7, 2023
What an insane intraday.
At what point can the Fed just stop talking no one with a time horizon/portfolio approach that is even semi relevant needs to know Powell's thoughts every 3rd day. pic.twitter.com/uU9x6PaAfW
— Arun S. Chopra CFA CMT? (@FusionptCapital) February 7, 2023
How seriously should we regard the recent market surge? At last week’s new recovery high of 4195, we can now see a small bearish divergence in the breadth data (percentage of stocks above their 20-day moving average). pic.twitter.com/tEg3Ydc2Rg
— Jurrien Timmer (@TimmerFidelity) February 7, 2023
AAII net bulls, smoothed. Stocks went sideways for ~1.5yrs after sentiment was persistently high. $SPY pic.twitter.com/PkXQCFOIkK
— Brian G (@alphacharts) February 7, 2023
Feels like a long way back to top for S&P 500, but current streak of not reaching prior high isn't at all unusual … still much shorter than bear markets associated with tech bust and GFC recessions pic.twitter.com/6KkXwpNjNo
— Liz Ann Sonders (@LizAnnSonders) February 7, 2023
narrowing junk spread $IEI: $HYG confirming the move in $SPY pic.twitter.com/86Ip7cPdOq
— Stacey.A.Lee (@BBaxter2020) February 7, 2023
These charts seem important IMO. Lot's of talk about falling inflation leading to lower interest rates.
Could be.
But I prefer to get it straight from the horse’s mouth.
So far the horse isn't saying anything I want to hear…#sentimentrader pic.twitter.com/YPBk79cEHT— Jay Kaeppel (@jaykaeppel) February 7, 2023
I see a lot of talk about the USD
It is probably a coincidence it could not close below the ⚓️VWAP from the Summer 2021 low which is also a 50% retrace of the rally from that low to the 2022 high pic.twitter.com/agm5LZAoQB
— Brian Shannon, CMT (@alphatrends) February 7, 2023
Market rallies higher on news that Jerome Powell likes to ride his bike
— Steven Strazza (@sstrazza) February 7, 2023