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Todayโs Summary
Friday, October 6, 2023
Indices: Nasdaq 100 +1.70% | S&P 500 +1.18% | Dow +0.87% | Russell 2000 +0.81%
Sectors: 10 of the 11 sectors closed higher. Tech led, gaining +1.87%. Consumer Staples was the only sector that closed lower, falling -0.55%.
Commodities: Crude Oil futures rose +0.58% to $82.79 per barrel. Gold futures snapped a 10-day losing streak, rising +0.73% to $1,845 per oz.
Currencies: The US Dollar Index fell -0.22% to $106.10, and snapped an 11-week winning streak.
Crypto: Bitcoin rose +1.94% to $27,948. Ethereum gained +2.15% to $1,646.
Volatility: The Volatility Index fell -5.63% to 17.44.
Interest Rates: The US 10-year Treasury yield rose to a new multi-year high of 4.805%.
Here areย the best charts, articles, and ideas shared on the web today!
Chart of the Day
Todayโs Chart of the Day was shared by Frank Cappelleri (@FrankCappelleri). The S&P 500 staged an impressive reversal today, which helped it avoid a five-week losing streak. It gapped lower, falling as much as -0.91% this morningย in a knee-jerk reaction to the September job report. However, it rose +2.11%ย off the intraday low, closing the day up +1.18%. Frank points out that price violated a short-term downtrend line that has been in place since mid-September. In a tweet yesterday, Frank explained, โBreaking a steep downtrend line has led to strong bounces since the start of โ22.โ The S&P 500 found its footing exactly where it needed to this week, and Fridayโs large reversal sets a bullish tone for next week. The next task for the bulls will be filling the gap from Sept. 21 by closing above 4,400.
Quote of the Day
โCuriosity is the wick in the candle of learning.โย
– William Arthur Ward
Top Links
Bullish Reversal on a Jobs Report: Is Correction Over? – Day Trader Playbook
Yuriy Matso highlights ten charts that suggest the pullback may be over.
Healthy Sector Rotation – All Star Charts
JC Parets examines the bullish message from the Discretionary/Staples ratio.
Utilities are Oversold but is the Selling Over? – LPL Financial Research
Adam Turnquist looks at what could be next for the Utilities sector after it’s recent decline.
Top Charts from the Financials Sector – Grindstone Intelligence
Austin Harrison shares some noteworthy charts in the Financial sector.
Bitcoin Grows Up – Bespoke
Bespoke points out that Bitcoin has calmed down in recent years as it matures as an asset class.
Top Tweets
Good thing $SPX recovered to close up. Down 5 weeks in a row has been very bearish (90% have continued lower) pic.twitter.com/sY5pwi9Ynv
โ Urban Carmel (@ukarlewitz) October 6, 2023
Today reminds me one of those days back in 2022 when market dumped hard on the economic data release pre-market only to reverse and rip higher after open. Last year such days led to a multiweek rally even if it was just a bounce. pic.twitter.com/NAUwnQLG5y
— Barken Wuffett (@WuffettBarken) October 6, 2023
$IWM bullish engulfing the previous 3 days
(remember – "engulfing" only cares about real bodies) pic.twitter.com/qpVcSfvjuK
— Mike Zaccardi, CFA, CMT ๐ (@MikeZaccardi) October 6, 2023
There are some epic bullish engulfing formations printing in technology today…
Here is Nasdaq Cybersecurity ETF $CIBR set to engulf every candlestick body of the prior two weeks (10 trading days) pic.twitter.com/SM1I6Jqz7B
— Steven Strazza (@sstrazza) October 6, 2023
#NQ_F, 1hr
Wyckoff accumulation bottom. pic.twitter.com/kg6X34Q5L6
— Yuriy Matso (@yuriymatso) October 6, 2023
Potential selling climax #XLP pic.twitter.com/LJ03zN8FIb
— Michael Kahn, CMT (@mnkahn) October 6, 2023
$XLP is the easiest pitch in the world to swing at right here – as always, easy doesn't imply profitable.
Separately, this does show how MA's are best used imo – to plan and predict your own behavior because they sure as hell don't predict the underlying security! pic.twitter.com/uBZDtK1sNZ
— Steve Deppe, CMT (@SJD10304) October 6, 2023
% of bears in โฆ@AAIISentimentโฉ survey has risen to highest since May pic.twitter.com/t8MHlJTNwz
— Liz Ann Sonders (@LizAnnSonders) October 6, 2023
Down more than 3% in September, but still up YTD?
October usually does quite well, up 3.5% on avg.
But Q4 never lower and up more than 9% on avg. pic.twitter.com/oUP9CUcvaj
— Ryan Detrick, CMT (@RyanDetrick) October 6, 2023
Natural Gas quietly pushes to a new 8-month high… #commodities pic.twitter.com/GZbCNzIY7R
— Conor White, CMT, CIM (@ConorWhiteRJ) October 6, 2023
Risk happens fast.
Oil showing plenty of respect to those former highs – now time to see whether we can find some support here pic.twitter.com/ngWaDClYKR
— Austin Harrison, CFA, CMT (@meanstoatrend) October 6, 2023
And so ends the $DXY Dollar Index's second longest weekly run (11 weeks) on record.
Happens with the biggest weekly reversal (measured by 'upper weeks') since March. Full turn or breather? pic.twitter.com/u0jEWqozDG
— John Kicklighter (@JohnKicklighter) October 6, 2023
$SPX Relative to $DXY ๐จ๐
Its fairly simple โ
This is the post ๐ pic.twitter.com/jjbDk1eHoR
— BACH (@MortensenBach) October 6, 2023
This chart is comical! After getting crushed on their short U.S. Dollar bets for August and September, leveraged funds have decided the pain was too much and are now bullish ๐๐ pic.twitter.com/yxOo3fchmb
— Barchart (@Barchart) October 6, 2023
"Parabolic advances usually carry further than you think, but they do not correct by going sideways." — Bob Farrell pic.twitter.com/Dik4vMSiu4
— Walter Deemer (@WalterDeemer) October 6, 2023