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Today’s Summary
Monday, October 24th, 2022
Indices: Dow +1.34% | S&P 500 +1.19% | Nasdaq 100 +1.06% | Russell 2000 +0.35%
Sectors: 9 of the 11 sectors closed higher. Materials led, gaining +3.46%. Communications lagged, but still gained +0.64%.
Commodities: Crude Oil futures fell -0.55% to $84.58 per barrel. Gold futures inched lower by -0.13% to $1,654 per ounce.
Currencies: The US Dollar Index inched higher by +0.10%.
Crypto: Bitcoin fell -1.18% to $19,343. Ethereum fell -1.22% to $1,348.
Interest Rates: The US 10-year Treasury yield rose to a fresh decade high of 4.244%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Which one is lying $SPX or $TLT… pic.twitter.com/XCi1BKBo1g
— Arun S. Chopra CFA CMT? (@FusionptCapital) October 24, 2022
Today’s Chart of the Day was shared by Arun Chopra (@FusionptCapital). The chart shows the S&P 500 (top) and the 20+ Year Treasury Bond ETF, $TLT. Bonds continue to be under pressure, with $TLT closing at a fresh decade low today. It’s in its worst drawdown since inception (-45%), and it’s fallen for nine consecutive weeks for the first time ever. On the other hand, the S&P 500 has firmed up recently, closing at a one-month high today. Stocks and Bonds have been trending lower together all year, but at this point, something’s gotta give. Given recent correlations, it seems unlikely this divergence can continue much longer. As Arun asks… which one is lying?
Quote of the Day
“Never bet on the end of the world,
It only happens once.”
– Art Cashin
Top Links
Bullish Divergences vs. Bear Markets – Means to a Trend
Austin Harrison points out that some of the most important sectors of the S&P 500 are showing bullish RSI divergences.
Still Open to the Idea of A Rally – Research by Potomac
Dan Russo examines the near-term outlook for each of the major asset classes.
Make Money or Gossip About Fed Policy? – All Star Charts
JC Parets shows that the Consumer Discretionary vs. Staples ratio is diverging from the S&P 500.
Setting the Record Straight: Best Six Months, Halloween Indicator, Sell in May – Almanac Trader
Jeff Hirsch points out that the best six months are around the corner (November-April).
Trendlines over Headlines with Special Guest, David Settle – The Chart Report
Catch up on the latest episode of Trendlines over Headlines! This week, David Settle of Market Scholars joins us to talk Stocks, Commodities, the US Dollar, and more!
Top Tweets
Final heat map of the S&P 500's performance from today pic.twitter.com/L7Dl7DJiVd
— Stock Market News – Evan (@StockMKTNewz) October 24, 2022
Strong day for the indexes: $SPY, $QQQ, $DIA, $IWM. Breadth was lackluster, with a 53% up day on the NYSE, while new lows remain high for both the NYSE and Nasdaq pic.twitter.com/1Gqul0Im9h
— Stacey.A.Lee (@BBaxter2020) October 24, 2022
#ES_F, 1d
Will it break out again?
Depends how market reacts to the big tech reports. pic.twitter.com/PnNrAMtfeu
— Yuriy Matso (@yuriymatso) October 24, 2022
Of the 11 S&P 500 Sectors.
8 are now above their June lows.
Weighted Basis ~86% pic.twitter.com/emHZJ25PjM
— Larry Thompson, CPA (@HostileCharts) October 24, 2022
The next six months have been higher 18 of the past 18 times during a midterm year.
Yes, things have been tough this year so far, but be open to better times. What happened in the rear view mirror doesn't mean it'll happen again. pic.twitter.com/n3MbrVUyvZ
— Ryan Detrick, CMT (@RyanDetrick) October 24, 2022
#seasonality #electioncycle — SPX 4-year composite overlay. pic.twitter.com/xGMJ9UCJ9f
— Nautilus Research (@NautilusCap) October 24, 2022
Worst daily move for China since the 2008 GFC! pic.twitter.com/GTzDCKEIUL
— conradseric, CMT, CAIA, CEFA (@conradseric) October 24, 2022
Chinese stocks trading at levels not seen since the GFC/2008.$FXI pic.twitter.com/ZXGn9EB7Ma
— Greg Rieben (@gregrieben) October 24, 2022
The China internet ETF is at an all-time low, down 81% from its peak in Feb 2021. $KWEB
Charting via @ycharts pic.twitter.com/wGPihecSmq
— Charlie Bilello (@charliebilello) October 24, 2022
As miserable as the $KWEB move has been today, it's going to end up with a hammer candle.
Hammers show a sharp selloff, then a bounce to a close that ends near the session's high. Hammers are bottom reversal signals (in a falling trend). pic.twitter.com/S60XoXB2Xm
— Jonathan Harrier, CMT (@jonathanharrier) October 24, 2022
Talk about a lackadaisical set of weekly candlesticks…#Bitcoin $BTC pic.twitter.com/T2BAtQGhTm
— Louis Sykes (@haumicharts) October 24, 2022
Ladies and Gentlemen, the time has come https://t.co/xMTZN1hCMk pic.twitter.com/qweiqtFw01
— Nick Maggiulli (@dollarsanddata) October 24, 2022
You’re all caught up now. Thanks for reading!