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Today’s Summary
Thursday, July 27, 2023
Indices: Nasdaq 100 -0.22% | S&P 500 -0.64% | Dow -0.67% | Russell 2000 -1.29%
Sectors: Communications was the only sector that closed higher, gaining +0.84%. Real Estate lagged, dropping -2.11%.
Commodities: Crude Oil futures rose +1.66% to a three-month high of $80.09 per barrel. Gold futures dropped -1.24% to $1,946 per oz.
Currencies: The US Dollar Index rose +0.65% to $101.69.
Crypto: Bitcoin fell -0.46% to $29,219. Ethereum fell -0.60% to $1,861.
Interest Rates: The US 10-year Treasury yield jumped to 4.004%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
oh gawd.. $IWM bearish engulfing its last 7 sessions… pic.twitter.com/trqbZOFDdE
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) July 27, 2023
Today’s Chart of the Day was shared by Mike Zaccardi (@MikeZaccardi). The major indices gapped higher this morning and sold off throughout the session. As a result, their daily candles formed bearish engulfing patterns. Mike points out that the Russell 2000 ($IWM) engulfed the prior seven days worth of price action today. The Russell 2000 was also rejected at this level in August 2022 and February 2023. Today’s intraday reversal suggests weakness in the near term. However, daily candlestick patterns have little relevance to the long-term trend.
Quote of the Day
“You can’t stop the waves,
but you can learn to surf.”
–Jon Kabat-Zinn
Top Links
Sentiment Staying Bullish – Bespoke
Bespoke breaks down the latest sentiment readings.
Are Tech Stocks Getting A Little Too Bubbly Here? – Kimble Charting Solutions
Chris Kimble examines what could be next for the Nasdaq 100 ($QQQ) and Semiconductors ($SMH).
Banks/Financials – Bart’s Charts
James Bartelloni highlights the potential sell patterns and resistance levels in Banks and other Financials.
The Next Bull Market Catalyst – All Star Charts
JC Parets looks at what a retest in the US Dollar Index ($DXY) could mean for stocks.
Top Tweets
Daily Mkt Mood: Risk-Off
1. Solid bearish reversal
2. Stocks mainly close down
3. $NDX reverses ~2% gain to fall on day
4. Dollar and haven yen up ~0.50%
5. Bonds down but yields soarBig question is whether today’s selling continues or just one day jitters.
Charts continue…
— Abigail Doolittle (@TheChartress) July 27, 2023
That's not a pretty candle. $SPY #SPY pic.twitter.com/oITSOzBi4U
— Michael Nauss, CMT, CAIA 🇨🇦 (@MichaelNaussCMT) July 27, 2023
A Big Opening Gap turned into an Outside Reversal Day (or, as Gerry Tsai used to call then, an "O-o-o Big High-Low Close" day). pic.twitter.com/AKnwJk9QVS
— Walter Deemer (@WalterDeemer) July 27, 2023
Here are the stats for an outside down day off a new 50 day high. Short-term, it actually does not look entirely bearish.
However, the last time this happened the market sold off 6.5% over the next couple of months.$VIX $QQQ pic.twitter.com/wtKgWLQ54o
— Petr Pinkhasov (@PetrTrades) July 27, 2023
The S&P 500 bottomed on 10/13/2022 and has rallied +30%. Today GDP is announced as +2.4%. Repeat as many times as you need to in order to absorb the lesson: “The stock market leads the economy, NOT the other way around” (typically by about–you guessed it-9 months) @sentimentrader pic.twitter.com/S4qOX9WyvH
— Jay Kaeppel (@jaykaeppel) July 27, 2023
It is typically a good sign for the economy and risk assets when semiconductors break out from multi-month consolidation boxes relative to corporate bonds. Click image to enlarge. $SOXX vs. $LQD $SMH pic.twitter.com/SXXMIStPXi
— Chris Ciovacco (@CiovaccoCapital) July 27, 2023
Stocks turning lower vs. Commodities at a confluence of resistance. The relative trend continues to favor commodities. #stocks #commodities #OOTT pic.twitter.com/2IYq9Rr5Vu
— Ian Culley (@IanCulley) July 27, 2023
am I surprised that investors have their biggest underweight in commodities since May '20 and the chart turned up? of course not… @BofAML pic.twitter.com/ZxmG4q7iio
— David Cox, CMT, CFA (@DavidCoxRJ) July 27, 2023
Ten-year treasury yield back above 4% and looks like it could be resuming its breakout. 🧐$TNX #interestrates pic.twitter.com/4KyIgYGFP8
— Greg Rieben (@gregrieben) July 27, 2023
The real “pivot” pic.twitter.com/gaMkv8OaiE
— Todd Sohn (@Todd_Sohn) July 27, 2023