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Today’s Summary
Thursday, February 24th, 2022
Indices: Dow +0.28% | S&P 500 +1.50% | Nasdaq +3.34% | Russell 2000 +2.67%
Sectors: 7 of the 11 sectors closed higher. Tech led, gaining 3.42%. Consumer Staples lagged, dropping 1.72%.
Commodities: Crude Oil futures rose 0.77% to $92.81 per barrel. Gold futures rose 0.83% to $1926 per ounce.
Currencies: The US Dollar Index gained 0.89%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.967%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Russell 2000 digging in at the AVWAP from COVID lows for the 2nd time this year. Along w/ momo divergence, finally getting some signs of a bottom $IWM pic.twitter.com/ZUKSqLzSWy
— Steven Strazza (@sstrazza) February 24, 2022
Today’s Chart of the Day was shared by Steve Strazza (@sstrazza). The Russell 2000 began today in bear market territory, down more than 20% from its all-time highs. It has been the worst-performing major index, but Steve points out that it’s currently attempting to carve out a near-term bottom. For starters, it’s the only major index that is holding above its January lows. It’s also finding support at the Volume Weight Average Price, anchored to the Covid lows (blue line). In other words, this blue line represents the average price that buyers and sellers have transacted at since the Covid low. Lastly, momentum is diverging positively, with RSI failing to reach oversold conditions below 30. As we know, Small-Caps tend to lead the broader market higher or lower, so if the Russell can continue to hold up for the remainder of the week, then stocks could see some sort of relief rally next week.
Quote of the Day
“The intelligent investor is a realist who sells to optimists and buys from pessimists.”
– Benjamin Graham
Top Links
What’s Next for Stocks & Commodities – The Chart Report
In this quick video, Ian Culley and I look at what could be next for Stocks and Commodities after today’s wild price action.
This Low is Different From the Last – All Star Charts
Steve Strazza takes a look at today’s reversal.
Neutral Sentiment Plunges as Bears Move Back Above 50% – Bespoke
Bespoke breaks down the results of the latest AAII Sentiment Survey.
Nasdaq Spikes Higher as Growth Leads – StockCharts.com
David Keller and Todd Sohn discuss some of the latest technical developments.
Assessing the S&P 500’s Quick Correction – SentimenTrader
Jason Goepfert examines the speed of the correction in the S&P 500.
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Top Tweets
The Nasdaq 100 (QQQ) opened down more than 3%, finished up more than 3%, and finished more than 7% off the lows.
That has only happened one other time in history (April 2000).
What a day.
— Ryan Detrick, CMT (@RyanDetrick) February 24, 2022
We started the market day in dire straits, ended it in positive territory across all three big indexes. The geopolitical landscape is still in dire straits and the coming days will hold a lot of importance. pic.twitter.com/e9fS44X7D3
— Liz Young (@LizYoungStrat) February 24, 2022
The big difference between today's reversal and the reversal on the 24th can be summed up in one word…
PANIC!
We saw it today, but not on the 24th.
$SPY pic.twitter.com/b6YfhhYv56— Brian Lund (@bclund) February 24, 2022
3rd best day for Growth vs Value since the early 2000s $VUG $VTV
Almost got to the top spot. pic.twitter.com/iqvJxUqv9G— Mike Zaccardi, CFA, CMT (@MikeZaccardi) February 24, 2022
Here's a look at the MAGA charts after today's upside reversal… pic.twitter.com/QyIP81iY7u
— Bespoke (@bespokeinvest) February 24, 2022
S&P 500 Information Technology 1D
Bullish divergence is displaying at support. pic.twitter.com/pzWkX01FD3
— Shane C. Murphy (@murphycharts) February 25, 2022
$XLK – RSI Divergence ….. let's see if we can close strong. pic.twitter.com/rJkKOqxCum
— Larry Thompson (@HostileCharts) February 24, 2022
$ARKK +14.26% from the pre-mkt low pic.twitter.com/Y5nHwzcdS7
— Tom Hearden (@followtheh) February 24, 2022
This trend continues to play out. pic.twitter.com/UjPqua0x6v
— Strategas (@StrategasRP) February 24, 2022
Investors Intelligence Bulls minus Bears is now at 1.2%, nearing those extreme pessimistic levels where we've seen bottoms in stocks since the mid-90s, with the exception of 2008.
$SPY pic.twitter.com/9pi41IcFqr— Matthew Timpane, CMT (@mtimpane) February 24, 2022
Crude tags 100 pic.twitter.com/esb8jZSVoH
— Arun S. Chopra CFA CMT? (@FusionptCapital) February 24, 2022
WTI erases all intraday gains pic.twitter.com/Jjs9N6IljV
— Jonathan Ferro (@FerroTV) February 24, 2022
This is a blow-off top in #gold right? pic.twitter.com/QjXHGr3I3r
— Petr.bz? (@investor_charts) February 24, 2022
While commodities are likely to consolidate after today's gap higher and reversal, I would focus on the big picture. pic.twitter.com/wcZNgwT8bR
— Dean Christians, CMT (@DeanChristians) February 24, 2022
RTS – Russia Stock Market Index
Down 38% today
Down 51.2% since Feb 16 (six trading days ago) pic.twitter.com/ITelgvsMDy— Jim Bianco biancoresearch.eth (@biancoresearch) February 24, 2022
You’re all caught up now. Thanks for reading!