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Today’s Summary
Wednesday, February 22nd, 2023
Indices: Russell 2000 +0.34% | Nasdaq 100 +0.05% | S&P 500 -0.16% | Dow -0.26%
Sectors: 3 of the 11 sectors closed higher. Materials led, gaining +0.75%. Real Estate lagged, dropping -0.90%.
Commodities: Crude Oil futures dropped -3.16% to $73.95 per barrel. Gold futures were flat at $1,842 per ounce.
Currencies: The US Dollar Index rose +0.38% to $104.50.
Crypto: Bitcoin fell -1.18% to $24,162. Ethereum fell -1.07% to $1,642.
Interest Rates: The US 10-year Treasury yield moved lower to 3.919%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$SPX – Does 3930-3940 look like an important area?
Quite a lot going on there.
?200-Day MA
?The ATH downtrend line
?Oct '22 low trendline
?Oct '22 low AVWAP pic.twitter.com/BQBRvJcbN5— Andrew Moss, CMT (@Andy__Moss) February 22, 2023
Today’s Chart of the Day was shared by Andy Moss (@Andy_Moss). The S&P 500 poked its head above 4000 intraday, but it couldn’t hold above it, closing at 3991. Andy points out that there’s a major level of interest about 1% below today’s close. Between 3930 and 3940 you have;
1.) The 200-Day Moving Average
2.) The Downtrend Line from the All-Time High
3.) The Uptrend Line from the October Low
4.) The VWAP Anchored to the October Low
All four of these are bunched together in a tight 10-point range (0.25%). The fact that multiple indicators and trendlines have converged at this level doesn’t necessarily increase the odds that it will act as support, but it does raise the implications of a break or bounce.
Quote of the Day
“People should like something less when its price rises, but in investing they often like it more.”
– Howard Marks
Top Links
The Stock Market is Due a Bounce After the 697-Point Selloff in the Dow, Says This Analyst – Market Watch
Mark Newton shares his near-term outlook on the S&P 500.
Up to the Minute(s) – Trading Adventures
Andy Moss examines the price action we’ve had so far this week.
Bullish Sentiment Could Signal Short-Term Pullback – Schaeffer’s Investment Research
Rocky White takes a look at the Investors Intelligence survey and what it could be signaling for the S&P 500.
Utilities Should Experience HUGE Move When This Pattern is Resolved! – Kimble Charting Solutions
Chris Kimble explains why the Utilities sector could be gearing up for a big move.
Top Tweets
Final heat map of the S&P 500's $SPY performance from today pic.twitter.com/Xkmz0g6EVf
— StockMKTNewz – Evan (@StockMKTNewz) February 22, 2023
The S&P 500 fell for the 4th straight day, erasing early gains to finish down 0.16%. The release of the Fed’s FOMC meeting minutes didn’t reveal anything new, but #stocks still hit some turbulence. The #Fed remains committed to fighting inflation. pic.twitter.com/433M7YDbzD
— Cetera Investment Management (@ceteraIM) February 22, 2023
The S&P is staring at multiple decision points — sniffing around the 50dMA, right on top of the "higher lows" line, and the 200dMA is just a hop away. It's about to get interesting…again. pic.twitter.com/B2tKrUmDCY
— Liz Young (@LizYoungStrat) February 22, 2023
Do the Bears hit the trend line before the weekend or the month's end? Asking for a friend. #sp500 Looks like 3930, approximately, gets us on that "stupid line". pic.twitter.com/zGQ0Wu56Gh
— Chris Robinson (@cer_hedge) February 22, 2023
4100. Still a problem $SPX pic.twitter.com/2NU7N36Xlo
— Austin Harrison, CFA, CMT (@meanstoatrend) February 22, 2023
Given lots of discussion over spread between S&P 500’s forward earnings yield minus 10y Treasury yield (orange), worth noting it has spiked to a peak at major recessionary bear market lows…today’s level more consistent with market in overvalued zone (looking back at history) pic.twitter.com/93NhXfJiqc
— Liz Ann Sonders (@LizAnnSonders) February 22, 2023
You could put your money in a 10-year Treasury bond and earn 3.9%, or you could put your money in a tech stock and potentially earn….4.2%?
This is why it's tough to justify certain stocks at these levels (unless you can hold long enough for that risk-return to improve) pic.twitter.com/Tq0BTmYZnP
— Callie Cox (@callieabost) February 22, 2023
Here's the range the US Dollar Index has been in over the past couple months. Staying within this range is probably not a bad thing for stocks. Resolving lower probably a positive for equities. Breaking out above January highs would likely put further pressure on stocks imo $DXY pic.twitter.com/YxjU7Yi1V3
— J.C. Parets (@allstarcharts) February 22, 2023
Attn party people: RexShares is launching 3x and -3x physical gold ETNs tomorrow, tickers are $SHNY and $DULL. Rare case where there's going to be 3x but no 2x. pic.twitter.com/Z9o8mtdC3R
— Eric Balchunas (@EricBalchunas) February 21, 2023
"Natural gas prices are down by a record 79% over the last six months," –@bespokeinvest . "There’s no analog to the magnitude of the current decline as the largest six-month decline prior to this one was 68%" pic.twitter.com/Badkorg0wL
— Gunjan Banerji (@GunjanJS) February 22, 2023
Strong trend in $TWNK
I haven't had one in over a decade. I guess I'm the only one. ? pic.twitter.com/SbFdTq1m8J
— Greg Rieben (@gregrieben) February 22, 2023