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Today’s Summary
Wednesday, May 4th, 2022
Indices: Nasdaq 100 +3.41% | S&P 500 +2.99% | Dow +2.81% | Russell 2000 +2.69%
Sectors: All 11 sectors closed higher by 1% or more. Energy led, jumping +4.15%. Real Estate lagged, but still gained +1.18%.
Commodities: Crude Oil futures moved higher by +5.02% to $107.55 per barrel. Gold futures rose +0.63% to $1,882 per ounce.
Currencies: The US Dollar Index dropped -0.91%.
Crypto: Bitcoin gained +5.31% to $39,733. Ethereum rose +5.49% to $2,933.
Interest Rates: The US 10-year Treasury yield fell to 2.940%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Failed break down with $IWM?
Very convincing move today post FOMC, it appears the market priced in a 50bps hike and likes what it's heard from Mr Powell… it's a day by day / week by week thing just now but it's encouraging.I'll take it. pic.twitter.com/mPsVEiDtDy
— Sam McCallum ??????? (@Honeystocks1) May 4, 2022
Today’s Chart of the Day was shared by Sam McCallum (@Honeystocks1). It’s a daily candlestick chart of the Russell 2000 ($IWM) over the past year and a half. The major indices were trading at delicate levels heading into today’s Fed announcement, but they rebounded right where they needed to. Sam points out that the Russell 2000 has formed a failed breakdown over the past few sessions. As we know, failed breakdowns often lead to sharp moves higher. It also reclaimed the VWAP from the COVID lows that it broke last week. This is bullish for the Russell 2000 in the short term. However, there is still a lot of technical damage to repair considering the index is still 10% below its declining 200-day moving average and 20% below its all-time highs. At this point, the next major resistance level is around $211, which is about 9% higher from here.
Quote of the Day
“Always more questions than answers there are.”
– Yoda
Top Links
4 Things You Didn’t Know, But Need To – LPL Financial Research
The team at LPL Financial Research shares some interesting stats about recent price action.
Could April Showers Bring May Flowers? – Schaeffer’s Investment Research
Rocky White examines how the S&P 500 has historically performed in May after a bad April.
140 (XLK) and 160 (XLY) are the Crucial Levels to Watch – StockCharts
Julius de Kempenaer analyzes recent sector rotation.
NASDAQ Midterm Seasonal Pattern Trends Lower – Almanac Trader
Seasonality expert, Jeff Hirsch takes a look at how the Nasdaq has historically performed in midterm election years.
It Gets Harder From Here – The Irrelevant Investor
Michael Batnick shares some thoughts on today’s rally.
Top Tweets
The S&P 500 is on track for more than a 2.25% gain on a day the Fed hiked interest rates.
That's happened only one other time in 40 years.
It was March 21, 2000.
— Jason Goepfert (@jasongoepfert) May 4, 2022
Final heat map of the S&P 500's performance from today pic.twitter.com/FqQXghuIOm
— Stock Market News (@StockMKTNewz) May 4, 2022
The S&P 500 after the Fed pic.twitter.com/66YYf64bVh
— TradingView (@tradingview) May 4, 2022
As of today's close, $NYSE has "failed breakdown" look; longer it remains, more relevant it becomes. Similar looks on numerous charts. pic.twitter.com/kEdA28ewAf
— Chris Ciovacco (@CiovaccoCapital) May 4, 2022
It's deja vu all over again pic.twitter.com/BTaMtABajF
— J.C. Parets (@allstarcharts) May 4, 2022
#VIX — Cycle update. pic.twitter.com/2qxRHjkX5C
— Nautilus Research (@NautilusCap) May 4, 2022
$DBC commodities looking for a fresh closing high $UUP pic.twitter.com/keYlsFnEcT
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) May 4, 2022
$DBE energy commodities breaking ? pic.twitter.com/fRjXmWOilp
— The Baguette Investor (@TheBaguetteInv1) May 4, 2022
Oil $WTIC $CL_F up against the ⚓️VWAP from the peak with buyers recently found at ⚓️VWAP from December 2021 low pic.twitter.com/kUEOgBIuEL
— Brian Shannon, CMT (@alphatrends) May 4, 2022
Feels like the energy complex is on the verge of a(nother) short-term breakout with both #crudeoil and #natgas pushing thru minor resistance #fairleadstrategies pic.twitter.com/IXA6lGNQbP
— Katie Stockton, CMT (@StocktonKatie) May 4, 2022
Energy stocks back to a very important level…$XLE $XOP $XES pic.twitter.com/s8V9Brb6Ui
— Ian McMillan, CMT (@the_chart_life) May 4, 2022
$XOM looks ready to test the old adage that what makes it to 90 gets to 100. pic.twitter.com/stQiYoKyYR
— Willie Delwiche, CMT, CFA (@WillieDelwiche) May 4, 2022
— Arun S. Chopra CFA CMT? (@FusionptCapital) May 4, 2022
You’re all caught up now. Thanks for reading!