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Today’s Summary
Thursday, February 10th, 2022
Indices: Dow -1.47% | S&P 500 -1.81% | Nasdaq –2.10% | Russell 2000 -1.55%
Sectors: All 11 sectors closed lower. Materials led, but still fell 0.48%. Real Estate lagged, dropping 2.85%.
Commodities: Crude Oil futures inched higher by 0.25% to $89.88 per barrel. Gold futures were flat and continue to trade at $1,837 per ounce.
Currencies: The US Dollar Index rose 0.25%.
Interest Rates: The US 10-year Treasury yield rose above 2% for the first time since 2019, closing at 2.035%
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Hard intraday rejection on the retest of the bottom of the range. 200d MA continues to roll over and AVWAPs from previous highs continue to act as resistance as well…$IWM $RUT $RTY_F pic.twitter.com/r5seb4JtSc
— Ian McMillan, CMT (@the_chart_life) February 10, 2022
Today’s Chart of the Day was shared by Ian McMillan (@the_chart_life). It’s a daily candlestick chart of the Russell 2000 over the past year and a half. The Russell 2000 rebounded more than 8% off the January lows in less than two weeks, however, it reversed hard today at a very familiar level. That $208~211 level acted as support several times last year until it finally broke a few weeks ago. As we know, former support levels tend to act as resistance when they’re retested, and that’s exactly what we’re seeing now. Ian also points out that the 200-day moving average (orange) is beginning to slope downward and the Anchored VWAPs (purple) from precious highs are continuing to act as resistance. Small-Caps tend to lead the broader market higher or lower, so this doesn’t exactly bode well for the bulls.
Quote of the Day
“One market paradigm that I take exception to is: Buy low and sell high. I believe that far more money is made buying high and selling at even higher prices.”
– Richard Driehaus
Top Links
Semiconductors at Risk! – StockCharts.com
Julius de Kempenaer examines rotation within the Technology sector.
Are Semiconductors Flashing Green Light or About to Tank??? – Kimble Charting Solutions
Chris Kimble points out that the Semiconductor Index (SOX) is testing an important long-term Fibonacci level.
What Happens When Interest Rates Rise for 7 Straight Weeks – SentimenTrader
Jason Goepfert takes a look at the 2-year Treasury yield’s seven-week winning streak.
Neutral Sentiment Crosses Above 40 – Bespoke
Bespoke breaks down the results of the latest AAII Sentiment Survey.
Midweek Update | Agricultural Commodities are Hot – The Chart Report
In case you missed it, here’s yesterday’s Midweek update video in which we highlight the noteworthy trends across the markets.
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Top Tweets
The S&P 500 has been stuck between its 50- and 200-day moving averages. pic.twitter.com/RbWln7DtgQ
— Eddy Elfenbein (@EddyElfenbein) February 10, 2022
$IWM I’m gonna call that first attempt at the $208 level unsuccessful pic.twitter.com/yrA8A109d4
— Matt Petrallia (@theEquilibrium) February 10, 2022
If you like base breakouts, you'll love Food Products $XLP $SPY pic.twitter.com/Edmauk7Vmw
— Drew Wells, CMT, CIMA® (@DrewTheCharts) February 10, 2022
Notable global groups at important levels. pic.twitter.com/adF2YQy9aB
— Strategas (@StrategasRP) February 10, 2022
We used to have a saying that the bond market leads the stock market. Wonder if it still works… (Note: This bond chart only updates after the close; it's currently trading below 152.) pic.twitter.com/2ubp8PqNV9
— Walter Deemer (@WalterDeemer) February 10, 2022
10-year treasury yield rises above 2% for the first time since 2019. pic.twitter.com/oO6NTCL3cg
— MicroSectors (@msectors) February 10, 2022
What a day! The 2-year US Treasury #yield spiked by 0.25%. The 10-2 year #yieldcurve is down to just 0.43%. Out of the 3 factors that may force the #Fed to hike less than expected (stock market correction, financial conditions, yield curve), this is the one to watch. pic.twitter.com/Saa1Dx5Zxg
— jeroen blokland (@jsblokland) February 10, 2022
Extreme moves in bonds today… 2-year yields up 20+bps in a move you can see from space. pic.twitter.com/BkxcJ3Kql1
— Tracy Alloway (@tracyalloway) February 10, 2022
I challenge you to find a more amazing chart than the 2-year Treasury yield over the past two years. pic.twitter.com/PJ4ZTx3g2B
— Brian Chappatta (@BChappatta) February 10, 2022
Interesting we arent seeing much of a value/growth factor move today despite the move in rates.
Markets (at least from a factor perspective) seem to care more about long-term rate moves than short. Our recent equity duration work argues the same.
2yr (+24bps) and 10yr (+10bps) pic.twitter.com/v26fvcUSnn
— Christopher Cain, CMT (@PythonTrader) February 10, 2022
Gold marching higher again. Up 8 of the past 9 days and on the verge of erasing the late-January drop pic.twitter.com/ZoLls4i93n
— Scott Brown, CMT (@scottcharts) February 10, 2022
Gold futures coiling pic.twitter.com/JUgRmOMTaT
— David Rath (@DJwrath) February 10, 2022
Here's the Corn ETF resolving higher from a bearish-to-bullish reversal pattern.$CORN pic.twitter.com/1zougJ6oup
— Alfonso Depablos (@AlfCharts) February 10, 2022
Copper has been consolidating for 9-months and the 14-day ADX reading is near 10. I'm anticipating an explosive when it resolves. $HG_F pic.twitter.com/mTdTqAilyb
— Ian Culley (@IanCulley) February 10, 2022
Freeport-McMoran $FCX trying to punch through $46. A breakout here would set up an initial price target of $54. pic.twitter.com/mSPPM12k8v
— Tarek I. Saab (@FibLines) February 10, 2022
Current sentiment pic.twitter.com/qguRAsVbaL
— Urban Carmel (@ukarlewitz) February 10, 2022
You’re all caught up now. Thanks for reading!