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Today’s Summary
Wednesday, June 16th, 2021
Indices: US Stocks closed lower in today’s session with the Dow falling 266 points or 0.77%. The S&P 500 and Nasdaq slipped 0.54% and 0.24%, respectively. The Russell 2000 moved lower by 0.26%.
Sectors: Consumer Discretionary was the only sector to close positive, inching up just 0.05%. Utilities lagged, falling 1.50%.
Commodities: Crude Oil futures were unchanged at $72.15 per barrel. Gold futures tumbled 2.56% to $1,813 per ounce.
Currencies: The US Dollar Index had its best day in more than a year, jumping 0.98%.
Interest Rates: The 10-year US Treasury yield rose to 1.577%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$DJIA $DIA pic.twitter.com/bkNA4Mxd6J
— Ian McMillan, CMT (@the_chart_life) June 16, 2021
Today’s Chart of the Day was shared by Ian McMillan (@the_chart_life). It’s a chart of the Dow Jones Industrial Average over the past year (bottom), and the % of Dow stocks above their 50-day moving averages (top). We’re continuing to see breadth and momentum deteriorate beneath the surface of the market. Ian points out that while the Dow has drifted to new highs in recent weeks, fewer and fewer of its constituents have been able to keep up with their respective 50-day moving averages. This isn’t just the case for the Dow, it’s happening in the S&P 500 as well. If market internals don’t improve soon, stocks could be due for some turbulence in the weeks ahead.
Quote of the Day
“When a long-term trend loses its momentum, short-term volatility tends to rise. It is easy to see why that should be so: the trend-following crowd is disoriented.”
– George Soros
Top Links
3 Historic Precedents Show Tech Stocks Will Go Higher – Yahoo Finance
Joe Fahmy explains why Tech/Growth stocks could be poised for a new leg higher.
Why Inflation Worries Likely Just Peaked – LPL Financial Research
The team at LPL Financial Research weighs in on the overwhelming chatter around inflation.
High Octane Crude – Bespoke
Bespoke points out that Crude Oil has printed new intraday highs for 14 straight days now.
Financials and Energy Sectors Are (Re)Gaining Strength, Which Industrials To Watch? – StockCharts.com
Julius de Kempenaer examines Energy and Financials.
The New Market Momentum: Reading the Technical Indicators – Future
Katie Stockton demonstrates how she uses the MACD indicator to gauge momentum and manage risk.
Top Tweets
This is still a secular bull market which may still yet have another 10yrs to run. You can fight it, trying to call every major top that never materializes, or you can embrace it by looking for opportunities that arrive with periodic price consolidation. pic.twitter.com/JK25rICgXJ
— Seth Golden (@SethCL) June 15, 2021
The breakdown in the % of stocks above their 50-day MA does not appear to be a result of the moving average simply 'catching up' to price. Instead, both now are falling which suggests internals of the market are weakening. $SPX $SPY pic.twitter.com/Ef48zQAAUc
— Andrew Thrasher, CMT (@AndrewThrasher) June 16, 2021
So how did the moment go? Its still a fierce battle but has closed above the 50 and 200 last few days $ARKK pic.twitter.com/FGapv72JO0
— Michael Antonelli (@BullandBaird) June 16, 2021
S&P Biotechs vs. SPX Seasonality. pic.twitter.com/4rGismRG4t
— Nautilus Research (@NautilusCap) June 15, 2021
$DXY pic.twitter.com/SCyjeWYAaT
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) June 16, 2021
Post-FOMC, the $DXY trade-weighted Dollar index has posted its biggest single-day rally since May 11, 2020 pic.twitter.com/uMGYk8qDxU
— John Kicklighter (@JohnKicklighter) June 16, 2021
Copper further below its 50-DMA than at any point in the last year. pic.twitter.com/IyriIMQ5Md
— Bespoke (@bespokeinvest) June 16, 2021
Worth watching pic.twitter.com/qdPD1PaSdQ
— J.C. Parets (@allstarcharts) June 16, 2021
Crude Oil doing its own thing! $HG_f $CL_f $LB_f pic.twitter.com/glqaguckcQ
— Grant Hawkridge (@granthawkridge) June 16, 2021
$DBC commodity ETF not much of a pullback so far. pic.twitter.com/McvrLVzwrD
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) June 16, 2021
Market down: All caps
Maket up: Regular text pic.twitter.com/DpXC8YigCO
— Arun S. Chopra CFA CMT? (@FusionptCapital) June 16, 2021
You’re all caught up now. Thanks for reading!