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Today’s Summary
Friday, August 26th, 2022
Indices: Dow -3.03% | Russell 2000 -3.30% | S&P 500 -3.37% | Nasdaq 100 -4.10%
Sectors: All 11 sectors closed lower by more than 1%. Energy led, but still fell -1.17%. Technology lagged, dropping -4.27%.
Commodities: Crude Oil futures rose +0.49% to $92.97 per barrel. Gold futures dropped -1.16%, to $1,751 per ounce.
Currencies: The US Dollar Index rose +0.38%.
Crypto: Bitcoin dropped -4.33% $20,639. Ethereum tumbled -8.41% to $1,553.
Interest Rates: The US 10-year Treasury yield rose to 3.043%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The combo of yesterday's big gain and today's bigger decline has produced many topping patterns like this. $NDX is just one example. pic.twitter.com/9TX4oJiQ3w
— Frank Cappelleri (@FrankCappelleri) August 26, 2022
Today’s Chart of the Day was shared by Frank Cappelleri (@FrankCappelleri). It’s a daily bar chart of the Nasdaq 100 index over the past six months. The Nasdaq ended the week on a sour note today, dropping 4.10%, marking the worst day since June 13th. Frank points out that Thursday’s big gain, followed by today’s big drop formed the right shoulder of a bearish head & shoulders pattern. We broke the neckline of that pattern today, which is especially concerning given that the neckline coincides with the June highs. The bulls really needed to hold above those June highs, but they couldn’t. Was all of August just one big failed breakout of the June highs? If so, we could see a sharp move lower in the near term.
Quote of the Day
“Only hawks get to go to central banker heaven.”
– Robert McTeer
Trendlines Over Headlines
In this week’s episode of Trendlines Over Headlines, Callie Cox of eToro joins us to make sense of the current market environment. She shares her perspective on the stock market, the economy, and more!
Top Links
Don’t Even Think About Buying…(This Sector) – Stock Charts
Julius de Kempenaer examines the continued weakness in the Communications sector.
Taking Another Crack at Natty Gas – All Star Charts
Ian Culley takes a look at the continued strength in Natural Gas.
Stock Market Analysis – Renewed Selling August 26, 2022 – AlphaTrends
In this video, Brian Shannon breaks down recent price action and highlights some key levels to watch next week.
Global Investors Hoping China ETF (FXI) Holds at Support – Kimble Charting Solutions
Chris Kimble breaks down a long-term chart of the China ETF, $FXI.
Top Tweets
With an hour remaining, only 10 stocks in the S&P 500 are higher. None in the Dow. pic.twitter.com/cWoIApT0rC
— Jay Woods (@JayWoods3) August 26, 2022
Only 5 stocks in the S&P 500 finished in positive territory today pic.twitter.com/tMVenpvfsl
— Emily Graffeo (@emily_graffeo) August 26, 2022
4th worst day of the year and beating by a hair the June 16th low decline. pic.twitter.com/HwfQ7nWhdV
— conradseric, CMT, CAIA, CEFA (@conradseric) August 26, 2022
4th worst day of the year and beating by a hair the June 16th low decline. pic.twitter.com/HwfQ7nWhdV
— conradseric, CMT, CAIA, CEFA (@conradseric) August 26, 2022
I don’t know how to put this, but this 4100 level for the SPX is kind of a big deal pic.twitter.com/fQNTafSNFC
— Austin Harrison, CFA, CMT (@meanstoatrend) August 26, 2022
Borrowed this from @verrone_chris and the great analysis always coming out of @StrategasRP, but the one-month trailing stop can be helpful in identifying when you have met the end of a bear market rally, as new bull markets usually don't look back. SPY getting dangerously close pic.twitter.com/9NP3k0uCNM
— Scott Brown, CMT (@scottcharts) August 26, 2022
Watch out next week.$SPY – every time we get these nasty sell bars on new information. We gap down big time the next trading day. pic.twitter.com/1t4TnLElpi
— Market Structure (@mrkstructure) August 26, 2022
small caps continuing down from resistance at previous "value area" or middle of prior range. pic.twitter.com/OzfG9LZDQw
— Linda Raschke (@LindaRaschke) August 26, 2022
small caps continuing down from resistance at previous "value area" or middle of prior range. pic.twitter.com/OzfG9LZDQw
— Linda Raschke (@LindaRaschke) August 26, 2022
Don't think it can't happen…$EURUSD pic.twitter.com/SUaKSW8cpH
— Ian McMillan, CMT (@the_chart_life) August 26, 2022
SPX – 10-year analogs > 50% correlation.
** NO AGENDA JUST RESPONDING TO SOME REQUESTS ** don't shoot, or welcome the messenger! pic.twitter.com/lqVQldZMAP— Nautilus Research (@NautilusCap) August 26, 2022
In June 1969, Fed Chair William McChesney Martin, referring to the Fed’s thus-far unsuccessful attempts to lower the 6%-plus inflation rate, stated: "We're going to have a good deal of pain and suffering before we can solve these things."
The rest is history… pic.twitter.com/QU7bOOnaZB— Walter Deemer (@WalterDeemer) April 8, 2022
More than a quarter of Fridays this year have been 1%+ down days for the S&P 500 $SPY. That's a lot of bad weekends for bulls. pic.twitter.com/GQFUJLxd9Q
— Bespoke (@bespokeinvest) August 26, 2022
You’re all caught up now. Thanks for reading!