Sponsored By:
Today’s Summary
Tuesday, March 7th, 2023
Indices: Russell 2000 -1.11% | Nasdaq 100 -1.22% | S&P 500 -1.53% | Dow -1.72%
Sectors: All 11 sectors closed lower. Consumer Staples led, but still fell -0.99%. Financials lagged, dropping -2.58%.
Commodities: Crude Oil futures snapped a five-day winning streak, dropping -3.58% to $77.58 per barrel. Gold futures dropped -1.87% to $1,820 per ounce.
Currencies: The US Dollar Index had its best day since October, rising +1.26% to a three-month high of $105.61.
Crypto: Bitcoin fell -0.96% to $22,191. Ethereum inched lower by -0.22% to $1,562.
Interest Rates: The US 10-year Treasury yield inched higher to 3.970%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Thus far, S&P 500's bounce at 200-day not too impressive. 200-day still a relevant guidepost; it sits at 3940. pic.twitter.com/xGX01XFyFB
— Chris Ciovacco (@CiovaccoCapital) March 7, 2023
Today’s Chart of the Day was shared by Chris Ciovacco (@CiovaccoCapital). The battle between the S&P 500 and its 200-day moving average rages on…We bounced off the 200-day on Thursday and rallied about 3.5% before rolling over on Monday. After today’s 1.5% drop, we’re within striking distance of the 200-day yet again. We initially reclaimed the 200-day at the end of January, and we’ve closed above it for 31 consecutive trading days. It’s been successfully tested three times since then, which has been constructive considering how many times it acted as resistance last year. Will buyers successfully defend the 200-day moving average for the fourth time?
Quote of the Day
“Listen to what the market is saying about others,
Not what others are saying about the market.”
– Richard Wyckoff
Top Links
March Strategy Session: 3 Key Takeaways – All Star Charts
The team at All Star Charts highlights three technical developments to be aware of.
JUNK (JNK) Bonds Form Bearish Gartley “Sell” Pattern – See it Market
James Bartelloni points out that Junk Bonds ($JNK) have formed a potentially bearish chart pattern.
Why So Bearish? – The Irrelevant Investor
Michael Batnick shares his thoughts on the persistence of bearish sentiment.
Fill The Gap Episode Twenty-Six, with Vernon Bice, CMT – CMT Association
The CMT Association sits down with Vernon Bice, a Portfolio Manager of several growth-oriented funds at Lord Abbett.
Top Tweets
Final heat map of the S&P 500's $SPY performance from today pic.twitter.com/kLiSVs3MCH
— StockMKTNewz – Evan (@StockMKTNewz) March 7, 2023
March 7th is the worst day of the month for stocks and one of the worst days of the year. pic.twitter.com/K4h51uUIIB
— Ryan Detrick, CMT (@RyanDetrick) March 7, 2023
#StockMarket still hanging on to support $SPX pic.twitter.com/O3U8ckjjJK
— Abigail Doolittle (@TheChartress) March 7, 2023
$SPY and $RSP unable to hold above their December highs illustrating weakness in breadth pic.twitter.com/ysMtLo6BoL
— Stacey.A.Lee (@BBaxter2020) March 7, 2023
Broad Dow Jones Composite dropped below 40-month for one month in 2022 and now has closed above 40-month for five consecutive months. Contrast that with 2001 and 2008 when price dropped below the 40-month and never recaptured it until after the major lows were in place. pic.twitter.com/KZua35OIkH
— Chris Ciovacco (@CiovaccoCapital) March 7, 2023
In a clear uptrend accompanied by low levels of volatility (like $VIX below 15-ish), it's easy to play technical analyst and "follow price". But when price isn't steadily up, many "technicians" suddenly become macro, Fed, rate analysts. True TA is a skill for all times. $SPX pic.twitter.com/SMilvwkgEU
— Jonathan Harrier, CMT (@jonathanharrier) March 7, 2023
The equity market hasn't seen this narrow of a monthly range very often in the last 50 years.
This is just the 11th time standard deviation has been this low. $SPX $SPY pic.twitter.com/MNXxglo3cS
— Andrew Thrasher, CMT (@AndrewThrasher) March 7, 2023
Yield curve inversion, it's been going on for 169 days….we all know it, but the market $SPY has been ignoring it (mkt not dumb). Note historical sector performance (maroon bar) vs what's working and not working. Today market completely foiling historical leadership. pic.twitter.com/y6NQMdnsd4
— RenMac: Renaissance Macro Research (@RenMacLLC) March 7, 2023
Yo, Charts – the 5th Gospel says, “The market cannot go up if the banks go down.” I promise I’m not blaspheming. pic.twitter.com/fIIK1vvI3N
— da Chart Life (@daChartLife) March 7, 2023
$DXY highest since Nov 29 $UUP pic.twitter.com/5uJvVLg2gK
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) March 7, 2023
$DXY US Dollar Index, overlayed with $SPX on an inverted scale. ? pic.twitter.com/1CQrR6Jp5Q
— Shane C. Murphy (@murphycharts) March 7, 2023
I updated the '08 analog since it seems to have magically disappeared off this site. $ES_F pic.twitter.com/d27GQr2lv9
— Arun S. Chopra CFA CMT? (@FusionptCapital) March 7, 2023