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Today’s Summary
Wednesday, July 20th, 2022
Indices: Russell 2000 +1.59% | Nasdaq 100 +1.55% | S&P 500 +0.59% | Dow +0.15%
Sectors: 7 of the 11 sectors closed higher. Communications led, gaining +1.65%. Utilities lagged, falling -1.33%.
Commodities: Crude Oil futures fell -0.85% to $99.88 per barrel. Gold futures dropped -0.61% to $1,700 per ounce.
Currencies: The US Dollar Index rose +0.33%.
Crypto: Bitcoin was flat and continues to trade at $23,415. Ethereum inched lower by -0.38% to $1,537.
Interest Rates: The US 10-year Treasury yield was flat and continues to be at 3.027%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$RUT Russell 2000 Index
Trading > 50 DMA
Next S/R zone marked ~1,950 pic.twitter.com/cqZbGeulCi— Shane C. Murphy (@murphycharts) July 20, 2022
Today’s Chart of the Day was shared by Shane Murphy (@murphycharts). The Russell 2000 has bounced about 10% off its June lows, but it’s still down more than 25% from its all-time highs. Shane points out that it is successfully holding long-term support around 1700 so far. However, there’s a major resistance level about 5-6% higher from here around 1900-1950. Price was already rejected here about a month ago…will the second time be the charm?
Quote of the Day
“Patience and discipline can make you look foolishly out of touch until they make you look prudent and even prescient.”
– Seth Klarman
Top Links
Best Performers Since Mid-June Low – Bespoke
Bespoke takes a look at the best performing stocks in the Russell 1000 since the most recent low.
A Step in the Right Direction – Research by Potomac
Dan Russo highlights some key takeaways from the current market environment.
NYSE Index Bounces Off 38.2 Fibonacci Level, Will it Hold? – Kimble Charting Solutions
Chris Kimble breaks down a long-term chart of the NYSE Index.
90% Up Days are Short-Term Bullish – The Final Bar
In this video, David Keller and Todd Sohn discuss the recent bounce.
Can the S&P 500 Keep Pace with Red Hot Inflation? – Schaeffer’s Investment Research
Rocky White examines how the S&P 500, Crude Oil, and Gold have historically performed after CPI reaches 9%.
Top Tweets
Looks like the S&P 500 just posted a gain after a 2%+ up day for the first time since March.
Pretty stark change given there were 3-4 instances earlier this year when the S&P would post a 2%+ gain, only to give it all back the next day.
— Callie Cox (@callieabost) July 20, 2022
The S&P 500 closed today at its highest level since June 9. We're still above the 50-DMA, but the 200 is a ways off. pic.twitter.com/FQ2xB1GFzN
— Eddy Elfenbein (@EddyElfenbein) July 20, 2022
$IWM +5.2% last two days.
Best back-to-back sessions since in 18 months pic.twitter.com/OUcQRxlcwi— Mike Zaccardi, CFA, CMT (@MikeZaccardi) July 20, 2022
We've only had 7 days so far this year with new highs > new lows. Didn't happen yesterday. Didn't happen today.
Typical year in the past two decades has had 100 days of new highs > new lows by mid-July. pic.twitter.com/iBb1yWxtiE
— Willie Delwiche, CMT, CFA (@WillieDelwiche) July 20, 2022
2. After 2x 10:1 up days within 3 months without a 10:1 down day in between, $SPX has more than doubled its LT average gain 1, 3, and 6 months later, on average. 2/5 pic.twitter.com/hUHKcxN8t6
— Ed Clissold (@edclissold) July 20, 2022
S&P 500 MA breadth…
Short-term obviously looks nice with 20d breadth back to the high end of their range (85%). 50d breadth back above 20%. Longer-term numbers still have some work to do.$SPX $SPY $ES_F pic.twitter.com/9rmg5fM2S4
— Ian McMillan, CMT (@the_chart_life) July 20, 2022
$SPY move above the downtrend is mirrored by the $IEI: $HYG spread falling below support, (however it has yet to break its uptrend) pic.twitter.com/fPkwFgCYh0
— Stacey.A.Lee (@BBaxter2020) July 20, 2022
How choice would it be if Homebuilders just ripped in the face of all the negative housing data. Early signs are already there ?♂️ $ITB $XHB $SPY pic.twitter.com/inu7gtq4UK
— Drew Wells, CMT, CIMA® (@DrewTheCharts) July 20, 2022
Crude Oil is still hanging in there. $CL_F pic.twitter.com/ZahsYCTo7k
— Ian Culley (@IanCulley) July 20, 2022
energy in three weekly flavours…
which chart to you think looks the strongest? pic.twitter.com/5YABilEihD— David Cox, CMT, CFA (@DavidCoxWG) July 20, 2022
Subjective Chart of Interest – Copper. pic.twitter.com/VeUjZSCU7b
— Nautilus Research (@NautilusCap) July 20, 2022
Bitcoin back above the 200-week Moving Average and continues to hold above the 2017 high. #crypto #bitcoin $BTC pic.twitter.com/Vc5Soh2I3S
— Andrew Thrasher, CMT (@AndrewThrasher) July 20, 2022
Mid-week humor pic.twitter.com/wFhQ1YZ7NH
— Mark Ungewitter (@mark_ungewitter) July 20, 2022
You’re all caught up now. Thanks for reading!