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Today’s Summary
Tuesday, August 30th, 2022
Indices: Dow -0.96% | S&P 500 -1.10% | Nasdaq 100 -1.13% | Russell 2000 -1.45%
Sectors: All 11 sectors closed lower. Financials led, but still fell -0.54%. Energy lagged by a wide margin, dropping -3.39%.
Commodities: Crude Oil futures dropped -4.89% to $92.27 per barrel. Gold futures fell -0.81% to $1,736 per ounce.
Currencies: The US Dollar Index inched higher by +0.09%.
Crypto: Bitcoin fell -1.86% to $19,924. Ethereum ticked lower by -0.22% to $1,550.
Interest Rates: The US 10-year Treasury yield was flat and continues to be at 3.106%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
In the recent rally off the June low where $SPY eclipsed its June high, the high yield credit spread never broke below its June low, and held its trend of higher lows and is once again moving higher pic.twitter.com/t3rHRSPZH0
— Stacey.A.Lee (@BBaxter2020) August 30, 2022
Today’s Chart of the Day was shared by Stacey Lee (@BBaxter2020). The chart shows the S&P 500 ($SPY) and credit spreads ($IEI/$HYG) over the past year. Credit spreads have been trending higher for the majority of 2022, indicating stress in the credit markets. Stocks and other risk assets don’t like it when credit spreads widen out like this…they move inversely. Stacey points out that while the S&P 500 made a new high in August, credit spreads never made a new low. Stocks and other risk assets will likely continue to struggle as long as the uptrend in credit spreads remains intact.
Quote of the Day
“By visualizing information, we turn it into a landscape that you can explore with your eyes. A sort of information map. And when you’re lost in information, an information map is kind of useful.”
– David McCandles
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Top Links
It’s Different This Time – The Irrelevant Investor
Michael Batnick highlights some key characteristics of this market environment that haven’t been witnessed in the past decade.
The Technical Case with Craig Johnson – Nasdaq Dorsey Wright
Craig Johnson shares his take technical outlook on the markets.
All About 1,000 Point Down Days – Carson Group
Ryan Detrick takes a look at days when the Dow sheds 1,000 points or more as we saw on Friday.
Stock Market Video Analysis August 30, 2022 – AlphaTrends
In this video, Brian Shannon lays out some key levels to watch in the remainder of the week.
High Correlation Between Stocks and Bonds – Bespoke
Bespoke examines the correlation between stocks and bonds.
Top Tweets
Oh wow, we just blew right through the S&P's 50-day and 4,000 didn't we? ?
— Callie Cox (@callieabost) August 30, 2022
50-day moving average? What 50-day moving average? #LikeAKnifeThruButter pic.twitter.com/MhzzZPMfHZ
— Gil Morales – The Gilmo Report & VoSI (@gilmoreport) August 30, 2022
$SPY has given back half the summer rally pic.twitter.com/UhGDSD5vGU
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) August 30, 2022
Not a lot to like about today's session. Some subtle improvements (less bad) as day progressed. For example, $VIX finished 4.8% below session high and was up 0.57% for the session. May learn something near S&P 500's 3900 level. TBD. pic.twitter.com/TDXw1LePUW
— Chris Ciovacco (@CiovaccoCapital) August 30, 2022
The S&P 500's year-to-date return through August is going to finish below -10% (presumptive, not going out on a huge limb here…)
Here are all calendar years that were down -10%+ through the month of August.
Stating the obvious here, I think, but things are going to get crazy. pic.twitter.com/dUvfNpnCFq
— Steve Deppe, CMT (@SJD10304) August 30, 2022
Bull and bear markets over the last 90 years pic.twitter.com/SAaYSa0ocw
— Markets & Mayhem (@Mayhem4Markets) August 30, 2022
Low expectations for stock price increases are historically a bullish pre-condition. These types of indications can be early (note 2008), but today's readings are more consistent with bottoms than tops $SPX. #sentiment pic.twitter.com/5Mvd2C46Nv
— RenMac: Renaissance Macro Research (@RenMacLLC) August 30, 2022
Converging trendlines near 80 makes this an important spot for $XLE. pic.twitter.com/B9TSiItKQ7
— Frank Cappelleri (@FrankCappelleri) August 30, 2022
$HG_F pic.twitter.com/pasY78ViJN
— Ian McMillan, CMT (@the_chart_life) August 30, 2022
Dr. Feelgood it is not $COPX #doctorcopper pic.twitter.com/5LCUjkMRad
— Michael Kahn, CMT (@mnkahn) August 30, 2022
ah yes, bitcoin rejecting the 200 Weekly MA for…
*checks notes*
the first time ever. pic.twitter.com/xkVY5zwSeS— rekt_teka$hi (@Rekt_Tekashi) August 29, 2022
You’re all caught up now. Thanks for reading!