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Today’s Summary
Friday, May 13th, 2022
Indices: Nasdaq 100 +3.70% | Russell 2000 +3.06% | S&P 500 +2.39% | Dow +1.47%
Sectors: All 11 sectors closed higher by 1% or more. Consumer Discretionary led, gaining +3.94%. Health Care lagged, but still rose +1.06%.
Commodities: Crude Oil futures moved higher by +4.11% to $110.49 per barrel. Gold futures dropped -0.90% to a three-month low of $1,808 per ounce.
Currencies: The US Dollar Index snapped a six-day winning streak, falling -0.27%.
Crypto: Bitcoin rose +1.75% to $29,401. Ethereum gained +4.22% to $2,037.
Interest Rates: The US 10-year Treasury yield rose to 2.922%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
there are no coincidences$SPY
⚓️VWAP from Covid pic.twitter.com/InY1me8ITC
— Brian Shannon, CMT (@alphatrends) May 13, 2022
Today’s Chart of the Day was shared by Brian Shannon (@alphatrends). It’s a daily candlestick chart of the S&P 500 ETF ($SPY) since the beginning of the pandemic. Brian points out that $SPY rebounded right at the Volume Weighted Average Price (VWAP) from Covid lows. This is essentially the average price ($384) that buyers and sellers have transacted at since the last bear market ended. Other indices, like the Nasdaq and the Russell 2000, remain below their respective VWAPs from the Covid low. So, the coast isn’t exactly clear, but this is a much-needed victory for the bulls. If $SPY eventually breaks this VWAP it would be a major red flag.
Quote of the Day
“Sometimes the questions are complicated and the answers are simple.”
– Dr. Seuss
Top Links
VWAP Stikes Again – The Chart Report
In this video, Steve Strazza and I recap this week’s price action and take a look at what could be next for the markets.
Being Short or Defensive in the Downtrend – TD Ameritrade Network
Legendary trader, Jerry Parker shares his thoughts on recent price action.
Breaking Down the Major Averages | 5 Charts – LPL Financial Research
Ryan Detrick and Scott Brown highlight five noteworthy charts to keep an eye on.
Tech Tries to Thrust – StockCharts.com
Greg Schnell examines the carnage in Tech stocks.
The Two Types of Bear Markets – A Wealth of Common Sense
Ben Carlson examines the difference between recessionary bear markets and non-recessionary bear markets.
Top Tweets
Nasdaq had its best day (3.8%) since November 2020 and finished the week down 2.8%
— Bespoke (@bespokeinvest) May 13, 2022
Wkly Mkt Mood: Risk-Off $SPX down 6th wk, bonds up big but…
Hope for a bear mkt rally w/ $VIX contained, mega cap tech Friday rally, $ARKK +11.8% for best day ever, memes up…
In other words, lots of animal spirits behind today’s dip buying w/ signs it may just continue.
— Abigail Doolittle (@TheChartress) May 13, 2022
Final heat map of the S&P 500's performance from today pic.twitter.com/FkxkjvVgcX
— Stock Market News (@StockMKTNewz) May 13, 2022
Today's bounce once again takes us to the 50-period moving average on the 1-hour chart. This is a fairly "normal" place to see intraday counter-swings move to. From here bulls need to show continuation next week. $SPX pic.twitter.com/19DnYcYILu
— Andrew Thrasher, CMT (@AndrewThrasher) May 13, 2022
Six consecutive down weeks for the S&P 500 since 1950. $SPY $SPX #stocks
2000 and 2008 are in there, but there are also some excellent longer-term returns.
So what’s it going to be? pic.twitter.com/bL3zxQdYtR
— Grant Hawkridge (@granthawkridge) May 13, 2022
Will the Nasdaq catch a bid here? $QQQ $NDX pic.twitter.com/yCbnbaNVXI
— Mike Singleton, CFA (@InvictusMacro) May 13, 2022
$SOXX vs. $SPX – Good to see semis following through on a relative basis so far. pic.twitter.com/iYMg5AxygA
— Larry Thompson, CPA (@HostileCharts) May 13, 2022
Look I don't wanna be a party pooper but..do you want to get turbo bulled up and bottom call when demand for low vol stocks looks like a beast? $SPX $SPLV $SPY pic.twitter.com/Tn4uASsyAm
— Drew Wells, CMT, CIMA® (@DrewTheCharts) May 13, 2022
TNX. US 10yr Treasury yield still below prior resistance. pic.twitter.com/ogAcUWlOKg
— Louis Spector (@EastCoastCharts) May 13, 2022
U.S. gasoline futures jump to an intraday record, via @theterminal pic.twitter.com/EJ4Thjf21H
— Lisa Abramowicz (@lisaabramowicz1) May 13, 2022
Both unleaded gas futures and ETF ticker UGA are trying to breakout. This is HUGE if they do – and also HUGE if they DON'T. A breakout or a false breakout and reversal are both significant at this juncture.#sentimentrader pic.twitter.com/52ASqmvG9A
— Jay Kaeppel (@jaykaeppel) May 13, 2022
lol $XHB Homebuilders have a foundation at $61!
That's 6 straight weekly settles there. pic.twitter.com/N3lIdpIr6x— Mike Zaccardi, CFA, CMT (@MikeZaccardi) May 13, 2022
Coinbase is up 16% today, and down 35% on the week. pic.twitter.com/18XhZ0QAqR
— Michael Batnick (@michaelbatnick) May 13, 2022
You’re all caught up now. Thanks for reading!