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Today’s Summary
Friday, February 18th, 2022
Indices: Dow -0.68% | S&P 500 -0.72% | Nasdaq -1.23% | Russell 2000 -0.93%
Sectors: Consumer Staples was the only sector that closed higher, inching up 0.18%. Technology lagged, falling 1.01%.
Commodities: Crude Oil futures inched higher by 0.19% to $90.21 per barrel. Gold futures inched lower by 0.12% to $1900 per ounce.
Currencies: The US Dollar Index rose 0.32%.
Interest Rates: The US 10-year Treasury yield fell to 1.934%.
**Reminder: The US Stock Market & Bond Market will be closed Monday, February 21st for Presidents’ Day**
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The share of stocks trading above their 200-day moving avg is near 50%, a level that has been make-or-break for the S&P 500 price trend in recent years. Breadth has rarely broken 50% for more than a few days without a significant correction emerging. SPX price & breadth in chart pic.twitter.com/0Nm0sPiga2
— Gina Martin Adams (@GinaMartinAdams) February 18, 2022
Today’s Chart of the Day was shared by Gina Martin Adams (@GinaMartinAdams). It’s a chart of the S&P 500 over the past seven years. Breadth has been deteriorating for nearly a year now, but it has reached a crucial level. As of today, only 43% of S&P 500 stocks are trading above their 200-day moving averages. In other words, over half of the stocks within the S&P 500 are in confirmed downtrends (as measured by the 200-day moving. average). Gina points out that 50% has been a key threshold for the index over the years, noting “Breadth has rarely broken 50% for more than a few days without a significant correction.” Caution remains warranted so long as breadth is below that key 50% threshold.
Quote of the Day
“The man who reads nothing at all is better educated than the man who reads nothing but newspapers.”
– Thomas Jefferson
Top Links
Small Caps Down, Gold Up | 5 Charts – LPL Financial Research
In this video, Ryan Detrick and Scott Brown highlight five noteworthy charts.
Crude Oil Snapping a Historic Winning Streak – Bespoke
Bespoke examines how Crude Oil has historically performed after ending an eight-week winning streak.
A Winner is Emerging in the Battle for the Large-cap Trend – StockCharts.com
Arthur Hill takes a look at a bearish moving average crossover in the S&P 500 between the 5-day and 200-day moving average.
Up 7 of the Last 10 After Presidents’ Day – LongerTerm Still Weak – Almanac Trader
Jeff Hirsch looks at how the major averages have performed after Presidents’ Day weekend.
Strength Outside of the U.S. and the Breakout in Gold – The Chart Report
In case you missed it, here’s a conversation I had with Steve Strazza yesterday, about the strength in Emerging Markets and Gold.
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Top Tweets
Yesterday was the 'worst day of the year' for the Dow.
While this is true, take note that a 1.8% drop would be one of the best 'worst days of the year' ever.
Going back to 1980, this avg worst day is -4.2%. pic.twitter.com/Qp17n5VoZI
— Ryan Detrick, CMT (@RyanDetrick) February 18, 2022
35 days into the year, $NDX down 14%, $SPX down 9%, $DJIA down 6%, Europe down 5% and emerging markets are…flat pic.twitter.com/rSdFWQjNe8
— Urban Carmel (@ukarlewitz) February 18, 2022
NASDAQ 100 having its worst rolling 2m performance since 2008 pic.twitter.com/byjSEW44WC
— Liz Ann Sonders (@LizAnnSonders) February 18, 2022
S&P 500 sitting on its 1-year average.$SPX $SPY pic.twitter.com/vyFkffw4SN
— Andrew Thrasher, CMT (@AndrewThrasher) February 18, 2022
$SPY getting a similar look on the weekly to 2018 after we broke the 40WMA pic.twitter.com/V8uclviEJO
— Bailey.Baxter2020 (@BBaxter2020) February 18, 2022
H&S top in S&Ps??? $SPX $ES_F $SPY
A number of technical traders have pointed out this potential top
While the form itself is close to perfection (so far), the volume profile is not consistent with classical charting
Highest volume should not be in right shoulder pic.twitter.com/1NZE1GmfX1— Peter Brandt (@PeterLBrandt) February 18, 2022
Staples sniffing around for new relative highs… pic.twitter.com/2JzH7wdjRB
— Ian McMillan, CMT (@the_chart_life) February 18, 2022
How many weeks has the $DBC commodities ETF closed higher since mid-December?
9 times. (in a row) #Bueller pic.twitter.com/8zSEpmqpiu
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) February 18, 2022
Yes. Gold thrives when stocks chop. It has less to do with inflation. https://t.co/Wtzk4OuWb5 pic.twitter.com/XKB7j6H3V1
— Brian G (@alphacharts) February 18, 2022
If you are trading Bitcoin you probably should pay close attention to tech stocks…$BTC $QQQ pic.twitter.com/5vu63GGOxO
— Greg Rieben (@gregrieben) February 18, 2022
Watching $BTC.X around this level here, strategy hasn't sold yet, but big rejection after getting long #BTC pic.twitter.com/18mwhrg0wN
— Rolando Santos (@TKPTrader) February 18, 2022
Popular stocks like $ROKU, $RBLX, $PLTR and $AFRM have dealt with spectacular drops over the past few weeks.
Which made me wonder…is this the fallout from case of market groupthink?
On community vs. groupthink and how to play your own game:https://t.co/qKYPl5DfXO pic.twitter.com/2oNBXIjgbH
— Callie Cox (@callieabost) February 18, 2022
You’re all caught up now. Thanks for reading!