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Today’s Summary
Wednesday, March 23rd, 2022
Indices: S&P 500 -1.23% | Dow -1.29% | Nasdaq 100 -1.41% | Russell 2000 -1.73%
Sectors: 2 of the 11 sectors closed higher. Energy led, gaining +1.72%. Financials lagged, falling -1.85%.
Commodities: Crude Oil futures gained +5.18% to $114.93 per barrel. Gold futures rose +0.82% to $1,937 per ounce.
Currencies: The US Dollar Index gained +0.20%.
Crypto: Bitcoin inched higher by +0.35% to $42,551. Ethereum rose +1.33% to $3,009.
Interest Rates: The US 10-year Treasury yield fell to 2.295%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
More than 95% of Nasdaq 100 stocks have regained their 20-day moving average with less than 45% of stocks above the 200-day MA.
This is just the 4th time short-term breadth has been this strong while long-term breadth has been this weak.$QQQ pic.twitter.com/TXUjpQQV9j
— Andrew Thrasher, CMT (@AndrewThrasher) March 23, 2022
Today’s Chart of the Day was shared by Andrew Thrasher (@AndrewThrasher). It’s a chart of the Nasdaq 100 over the past two decades. As of yesterday’s close, 95% of Nasdaq 100 stocks were above their 20-day moving average, while less than 45% were above their 200-day moving average. Andrew points out that there have only been three prior instances where short-term breadth was this strong while long-term breadth was this weak. Yes, the sample size is small. But all three prior instances occurred at major lows in 2009, 2018, and 2020.
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
The Bull Market Turns Two – LPL Financial Research
With today marking exactly two years since the 2020 bear market low, the team at LPL Financial Research compares the current bull market to previous ones.
Historic Two-Year Rallys – Bespoke
Bespoke examines how the major indices and sectors have performed since the March 2020 lows.
Buy Stocks, Sell Bonds – All Star Charts
The team at All Star Charts takes a look at Stocks vs. Bonds.
US Dollar Reaching Pivotal Long-Term Resistance! – Kimble Charting Solutions
Chris Kimble breaks down a long-term chart of the US Dollar.
Seven Themes Going Forward – Trend Investor Pro
In this video, Arthur Hill highlights seven themes to keep an eye on in the near term.
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Top Tweets
Daily Market Mood: Risk-Off/Confused
Stocks down >1%, bonds up, oil up, meme stocks soar, China tech up…
Maybe #oil up weighs on $SPX but yields down emboldens meme and China tech buyers?
Sometimes the cross-asset moves just don’t fit into a neat narrative.
Carry on!
— Abigail Doolittle (@TheChartress) March 23, 2022
S&P 1500 closing riiiiiiiiiight on the 200-day, testing from the topside after breaking above last week. $SPTM ? pic.twitter.com/MSU9G2gLJP
— Grayson Roze (@GraysonRoze) March 23, 2022
10-day S&P % change probing extremes pic.twitter.com/ujclNtAUVq
— Strategas (@StrategasRP) March 23, 2022
Rejected. $IWM #NBAJam pic.twitter.com/EVlPbmh8lf
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) March 23, 2022
$IWM bulls have a lot to prove to the wall of trapped wanna-be sellers at higher prices. pic.twitter.com/NnQGcA1Z9K
— World Famous Nature Boy (@Xiphos_Trading) March 23, 2022
While everyone's getting beared up on Small Caps, the riskiest part of the space has been outperforming.. $SML $IJR pic.twitter.com/NFImr6oY2t
— Drew Wells, CMT, CIMA® (@DrewTheCharts) March 23, 2022
Retail sentiment toward equities is now worse than any point since 2009. Institutions are meanwhile buying the dip. pic.twitter.com/NsUJaKu2di
— Gina Martin Adams (@GinaMartinAdams) March 23, 2022
Big Reversal in Longer Term Treasuries $TLT. Similar to stocks recently, momentum indicators had shown some positive divergences that did not confirm the new lows. Recession narrative has also started to creep in. $STUDY $MACRO pic.twitter.com/j8pa3icrxW
— Victor Riesco (@Global_Trader) March 23, 2022
$TLT last week's "hammer" pattern was violated early this week, but todays bullish reversal (daily) has this week's "stick" looking v interesting once again. The $129.50 pivot holding thus far. Friday's close will be key! https://t.co/w722OmcZhc pic.twitter.com/5pA9RbeNwv
— brian.joyce.nasdaq (@Nasdaqbjoyce) March 23, 2022
$SPX vs. UST yield curve. $STUDY pic.twitter.com/IQKmyj0YBI
— Mark Ungewitter (@mark_ungewitter) March 23, 2022
10y2y yield curve getting a lot of attention as it recently came close to inverting, but 10y3m is nowhere close (yet) pic.twitter.com/4UOkv61oSC
— Liz Ann Sonders (@LizAnnSonders) March 23, 2022
HAPPY BIRTHDAY, BULL MARKET!
Two years ago, the S&P 500 reached the bottom of its 34% COVID-fueled drop.
The next day, the bull started charging?
— Callie Cox (@callieabost) March 23, 2022
You’re all caught up now. Thanks for reading!