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Today’s Summary
Friday, February 24th, 2023
Indices: Russell 2000 -0.92% | Dow -1.02% | S&P 500 -1.05% | Nasdaq 100 -1.73%
Sectors: 3 of the 11 sectors closed higher. Materials led, gaining +0.67%. Real Estate lagged, dropping -1.85%.
Commodities: Crude Oil futures gained +1.23% to $76.32 per barrel. Gold futures fell -0.53% to $1,817 per ounce.
Currencies: The US Dollar Index rose +0.65% to a two-month high of $105.26.
Crypto: Bitcoin dropped -3.13% to $23,189. Ethereum fell -2.60% to $1,608.
Interest Rates: The US 10-year Treasury yield rose to 3.947%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The consensus bearish narrative toward equities seems overly confident. The S&P 500 may be retesting its breakout point rather than starting a new down leg. RSI and MACD lows from December are worth keeping an eye on. pic.twitter.com/mTywCPnyJG
— Gina Martin Adams (@GinaMartinAdams) February 24, 2023
Today’s Chart of the Day was shared by Gina Martin Adams (@GinaMartinAdams). The S&P 500 dropped -2.67% this week, marking the worst week so far in 2023. At the end of January, bulls cheered as the S&P 500 broke above its 200-day moving average and its downtrend line. We’re still above both, however, the bulls seem much less enthusiastic than they were when we initially broke out. It’s quite common to see a retest after a highly anticipated breakout. Gina suggests that this is nothing more than a classic retest, so long as RSI and MACD continue to hold above their December lows.
Quote of the Day
“Price reactions and pullbacks allow you to determine whether your stock is a tennis ball or an egg.”
– Mark Minervini
Trendlines over Headlines
Check out the latest episode of Trendlines > Headlines!
In this week’s episode, Petr Pinkhasov of Investor Charts joins us to examine some of the most important trends across the markets. We discuss the outlook for the Major Indexes, Energy Stocks, the US Dollar, Crypto, and more!
Top Links
February Mid-Month Conference Call: 5 Key Takeaways – All Star Charts
The team at All Star Charts highlights five key themes to focus on in the near term.
Mixed Signals – Bespoke
Bespoke examines sector performance since the October lows.
Looks Like a Major Shift in Leadership in the Energy Sector – StockCharts
Julius de Kempenaer looks at what could be next for the Energy sector.
Anchored VWAP Stock Market Technical Analysis 2/24/23 – Brian Shannon
In this quick video, Brian Shannon analyzes this week’s price action and he lays out a few key levels of interest to keep an eye on next week.
Doctor Copper, Give me the News – LPL Financial Research
Adam Turnquist takes a look at Copper and what it could be suggesting about the health of the stock market and the economy.
Top Tweets
$SPY Weekly performance. Anything stand out to you? ? pic.twitter.com/PEIDaQvMf1
— TrendSpider (@TrendSpider) February 24, 2023
Weekly $SPX update: back below key potential support level at 40wk EMA. Long-term trend hanging on by a thread. Without a quick reversal, the December closing lows near 3840 come back into play. pic.twitter.com/5XiYP1HiDm
— Michael Turvey (@MikeTurvey_TDA) February 24, 2023
Is this just normal late February/early March weakness after one of the best January returns ever?
A normal pullback Into various levels of support?
Or something more? pic.twitter.com/gL2wekDBAf
— Ryan Detrick, CMT (@RyanDetrick) February 24, 2023
Yesterdays glimmer of hope was brought to you by Mr Trend Line.
Todays glimmer of hope is being brought to you by Mr 200 Day Simple Moving Average.
Next week it'll probably be Mr Fibonacci or Mr Support Level.
Watch the US Dollar. It'll give you the heads up. $SPX $SPY $DXY pic.twitter.com/yd3P4oZgE8
— Sam McCallum (@Honeystocks1) February 24, 2023
"Everyone is bearish!"
Not true. People own a *ton* of stocks
Positioning > sentiment pic.twitter.com/1Kh5U5dxc1
— Mike Singleton, CFA (@InvictusMacro) February 24, 2023
The strongest indexes and groups were unable to hold their new highs from earlier in the month $MDYV pic.twitter.com/6AQMC0U6zc
— Steven Strazza (@sstrazza) February 24, 2023
Two key trends I am watching closely:
1) Energy trying to hang onto leadership position
2) Technology clawing ahead of the overall market#sentimentrader pic.twitter.com/ufeV0KzQRg— Jay Kaeppel (@jaykaeppel) February 24, 2023
? new cycle highs for the 2 Year Treasury Yield. As @verrone_chris has been saying.. "yields will not go quietly" pic.twitter.com/rnPIT4hw9A
— Cameron Dawson (@CameronDawson) February 24, 2023
New year same story? $DXY pic.twitter.com/WU2Qdmx8el
— Grindstone Intelligence (@GrindstoneIntel) February 24, 2023
The Dr. is retesting the 3.95 level today. ?$HG_F pic.twitter.com/xXPUV4lC5I
— Ian Culley (@IanCulley) February 24, 2023
The Copper Stopper $SCCO
This is as pretty a potential H&S top as I have seen a very long time. pic.twitter.com/eQJXDpASGw— Peter Brandt (@PeterLBrandt) February 24, 2023
Here's how I see it. pic.twitter.com/HqgFE8l9XM
— J.C. Parets (@allstarcharts) February 24, 2023
The S&P 500 has recorded monthly returns of +/- 4% or more 8 consecutive months – and that's unprecedented.
February appeared to calm things down most of the month but we're now sitting at -2.85% for the month, so we got a shot at 9 in a row.
(I'd bet the under…)
— Steve Deppe, CMT (@SJD10304) February 24, 2023