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Today’s Summary
Wednesday, May 11th, 2022
Indices: Dow -1.02% | S&P 500 -1.65% | Russell 2000 -2.48% | Nasdaq 100 -3.06%
Sectors: 3 of the 11 sectors closed higher. Energy led, gaining +1.34%. Consumer Discretionary lagged, dropping -3.58%.
Commodities: Crude Oil futures rebounded +5.96% to $105.71 per barrel. Gold futures rose +0.69% $1,854 per ounce.
Currencies: The US Dollar Index inched up +0.08% to its highest level since 2002.
Crypto: Bitcoin dropped -7.19% to $28,738. Ethereum tumbled -11.32% to $2,070.
Interest Rates: The US 10-year Treasury yield fell to 2.927%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Now or never $BTC pic.twitter.com/s5eeMD11oi
— David Rath (@DJwrath) May 11, 2022
Today’s Chart of the Day was shared by David Rath (@DJwrath). It’s a daily candlestick chart of Bitcoin over the past two years. All eyes were on the Crypto markets today as one of the largest coins, $LUNA, crashed 95% overnight. David points out that the largest cryptocurrency, Bitcoin, is currently testing crucial support around $29k-$30k. As you can see, this level has been tested three times already. If it fails to hold, Bitcoin could easily drop another 33% to test the 2017 highs around $19k.
Quote of the Day
“Whenever you get a wild excess on the upside, the following correction doesn’t just go back to normal; it almost always falls way below normal.”
– John Templeton
Top Links
Over 40% of S&P 500 Stocks Below Pre-Covid Highs – Bespoke
Bespoke points out that 40% of S&P 500 stocks are below their pre-Covid highs.
Bear Market Getting Brutal – Market Analysis May 11, 2022 – AlphaTrends
In this video, Brian Shannon analyzes the wild price action we’ve seen this week.
S&P 500 Moving Averages Bulls Should Focus on Right Now – Schaeffer’s Investment Research
Rocky White uses moving averages to define the current market environment.
Rallies are Likely Countertrend – Potomac Fund Management
Dan Russo examines the near-term market outlook.
Our Dot Com Bubble – The Irrelevant Investor
Michael Batnick shares his thoughts on the carnage in growth stocks.
Top Tweets
Daily Market Mood: Brutal
Stocks fall sharply even w/ yields in.$AAPL big laggard -5.18% at must-hold levels. Tech dip buyers simply fled.
Oil >105 +5% does not help.
At odds, though, $VIX down slightly & seems to be leading $SPX this yr.
Precarious, NT bottom ahead?
— Abigail Doolittle (@TheChartress) May 11, 2022
Final heat map of the S&P 500's performance from today pic.twitter.com/nTEJwDGXWD
— Stock Market News (@StockMKTNewz) May 11, 2022
You don't see 5-day declines of this magnitude in the Nasdaq very often. pic.twitter.com/WjHR4T0EMn
— Bespoke (@bespokeinvest) May 11, 2022
SPX 200-day low suggests cyclical bear market. Could end today or decline much further – no one knows. Favoring defense until a durable bottom is confirmed via breadth thrust or price momentum. pic.twitter.com/E2z17nlduO
— Mark Ungewitter (@mark_ungewitter) May 11, 2022
The 4th Turning: DJIA/NASDAQ pic.twitter.com/GdiSlMQOK2
— da Chart Life (@daChartLife) May 11, 2022
Russell 2000 at support (pre-COVID highs)… Important place for an important index $IWM $RTY pic.twitter.com/Dj1sQOHh1h
— Mike Singleton, CFA (@InvictusMacro) May 11, 2022
Transports $IYT $XTN pic.twitter.com/vSJMR61a8L
— Steven Strazza (@sstrazza) May 11, 2022
Transports with a lot of behavioral supply overhead…$XTN pic.twitter.com/zSgyVNZ16z
— Ian McMillan, CMT (@the_chart_life) May 11, 2022
Homies break again $XHB pic.twitter.com/froK5Ex3MY
— Michael Kahn, CMT (@mnkahn) May 11, 2022
Year-to-date, we have 3 sectors down over -20% and only one sector remains positive. pic.twitter.com/bxDECLwRa0
— Andrew Thrasher, CMT (@AndrewThrasher) May 11, 2022
The commodity bull story has basically morphed into an energy bull story (DBE red line)…
Economic sensitive metals are down double digits over the past month (zinc, alu, copper, iron ore…) to the point that DBB is now FLAT YTD. pic.twitter.com/Xq2M6o3qVI
— conradseric, CMT, CAIA, CEFA (@conradseric) May 11, 2022
I suspect the #Bitcoin maximalists and El Salvador are about to enter a world of pain.$BTC $ETH #Cryptocrash pic.twitter.com/01M8dsR60A
— Sam McCallum ??????? (@Honeystocks1) May 11, 2022
One way to think of crypto is as the purest momentum play under the sun. Everything's backed by inflows, which attract more inflows in a feedback loop.
When flows reverse it's painful because there's no natural re-entry point or circuit breaker. pic.twitter.com/sagNey5SOA
— Tracy Alloway (@tracyalloway) May 11, 2022
Crypto is Gen Z's Lehman Brothers. $LUNA pic.twitter.com/c4atSkkRZm
— Brandon Beylo (@marketplunger1) May 11, 2022
You’re all caught up now. Thanks for reading!