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Today’s Summary
Thursday, April 28th, 2022
Indices: Nasdaq 100 +3.48% | S&P 500 +2.47% | Dow +1.85% | Russell 2000 +1.80%
Sectors: All 11 sectors closed higher. Tech led, bouncing +4.00%. Utilities lagged but still gained +1.11%.
Commodities: Crude Oil futures rose +3.12% to $105.20 per barrel. Gold futures gained +0.33% to $1,886 per ounce.
Currencies: The US Dollar Index rose for the sixth consecutive day by +0.66% to a 20-year high.
Crypto: Bitcoin moved higher by +1.74% to $39,950 Ethereum gained +2.17% to $2,952.
Interest Rates: The US 10-year Treasury yield inched lower to 2.826%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
#ES_F, 4h
Those levels… pic.twitter.com/BsWMN6t5bc
— Yuriy Matso (@yuriymatso) April 28, 2022
Today’s Chart of the Day comes from Yuriy Matso (@yuriymatso). It’s a 4-hour candlestick chart of S&P 500 futures year-to-date. Yuriy points out that the S&P 500 has formed a well-defined trading range over the past three months. We bounced exactly where we needed to today at the lower bounds of the range around 4100. This level needs to continue holding in the near term or it could get ugly. However, as long as we’re above that level, the next major objective will be the top end of the range around 4600.
Quote of the Day
“Markets give you a lot of information if you’re willing to listen.”
– Frank Teixeira
Top Links
S&P 500 Down Year-To-Date and Down In April Preceeded Year Loss 69.2% of Time – Almanac Trader
Jeff Hirsch examines how the S&P 500 has historically performed when it has been down in April and year-to-date.
Which Stocks in the DOW are Worth Holding? – StockCharts.com
Julius de Kempenaer analyzes the strongest and weakest stocks in the Dow Jones Industrial Average.
US Dollar On Breakout Alert: Will 3rd Time Be A Charm? – Kimble Charting Solutions
Chris Kimble points out that the US Dollar Index is attempting to break above multi-year resistance.
Stock Market Analysis April 28, 2022 – AlphaTrends
In this quick video, Brian Shannon breaks down recent price action and lays out some key levels to watch in the near term.
Breadth Declines Abound – Potomac Fund Management
Dan Russo shares his weekly breadth analysis.
Join us in-person or virtually at the 49th Annual CMT Symposium on April 28th-29th in Washington D.C.
Top Tweets
"Stocks Rally on News of Pending Recession"
— Eddy Elfenbein (@EddyElfenbein) April 28, 2022
Final heat map of the S&P 500's performance from today pic.twitter.com/P2nEgLaofv
— Stock Market News (@StockMKTNewz) April 28, 2022
We're staring at a red April monthly return paired with red year-to-date returns through the month of April.
This is void of context but it's one of the more red/negative combinations I've randomly come across. pic.twitter.com/DnNszByapl
— Steve Deppe, CMT (@SJD10304) April 28, 2022
Nasdaq futures are ripping this morning, and this is definitely the place to look for a bounce. However, you need a 16% rally just to get back to where we started the month, and those highs combined with the 200-dma will be a tall order for growth stocks pic.twitter.com/6Ju3iiDRJr
— Scott Brown, CMT (@scottcharts) April 28, 2022
$QQQ nice action, but this move in small caps could be big for the bulls. Need confirmation tomorrow (and beyond). $IWM false breakdown? pic.twitter.com/3KAXdhyf4C
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) April 28, 2022
Notice how as the NYSE price retested the March 2022 lows this week, the ADVANCE/DECLINE line made a HIGHER LOW. This is a bullish divergence, indicative that a big reversal is brewing under the surface and due for a large scale rally phase. pic.twitter.com/XMaSYxJTVd
— Traderstewie (@traderstewie) April 28, 2022
THE BEARS ARE IN CHARGE
Respondents in the latest AAII survey were the most bearish since 2009. pic.twitter.com/6ZxyoBe79Y— Dani Burger (@daniburgz) April 28, 2022
Bears outnumbered Bulls by 43% in the latest AAII sentiment survey.
With data going back to 1987, the only other times we've seen sentiment this bearish…
1) Sep-Nov 1990 (-20% bear market that bottomed in Oct 1990 w/ recession in 1990-1991)
2) March 2009 (week of the lows) pic.twitter.com/V12XtFZRUK— Charlie Bilello (@charliebilello) April 28, 2022
Price > sentiment.
In uptrends, 'buy the dip'/sentiment works. In downtrends, it doesn't.
AAII sentiment became very bearish in Jan '08 before $SPX got cut in half over next 15 months. pic.twitter.com/NVIJxqAN5p
— Brian G (@alphacharts) April 28, 2022
The broad dollar index $DXY is bumping up against its strongest levels vs peers since 2002. pic.twitter.com/CfB9jGSuWE
— Lisa Abramowicz (@lisaabramowicz1) April 28, 2022
NASDAQ CLOWN PUNCHED LOWER IN AH -1.65%
— The_Real_Fly (@The_Real_Fly) April 28, 2022
You’re all caught up now. Thanks for reading!