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Today’s Summary
Friday, October 27, 2023
Indices: Nasdaq 100 +0.50% | S&P 500 -0.48% | Dow -1.12% | Russell 2000 -1.21%
Sectors: 2 of the 11 sectors closed higher. Consumer Discretionary led, gaining +1.05%. Energy lagged, dropping -2.40%.
Commodities: Crude Oil futures rose +2.80% to $85.54 per barrel. Gold futures inched higher by +0.06% to $1,999 per oz.
Currencies: The US Dollar Index ticked lower by -0.04% to $106.58.
Crypto: Bitcoin fell -0.76% to $33,906. Ethereum fell –1.33% to $1,780.
Volatility: The Volatility Index rose +2.85% to 21.26.
Interest Rates: The US 10-year Treasury yield inched lower to 4.839%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
An undercut of a prior important low when a market is extended to the downside often turns into a short term reversal; there is no sign of that yet $IWM drops below 2022 low and ⚓️VWAP from 2016 low pic.twitter.com/3wS61XaZnm
— Brian Shannon, CMT (@alphatrends) October 27, 2023
Today’s Chart of the Day was shared by Brian Shannon (@alphatrends). Small-Caps are staring into the abyss as we head into the weekend, with the Russell 2000 ($IWM) closing at a three-year low. It’s down -33% from its November 2021 peak and lost a crucial support level this week, around $163. This level coincides with the 2022 lows, and the VWAP anchored to the 2016 low (blue). Not only has $IWM given up all of its post-election gains, but also, the average buyer since the 2016 lows is now underwater. The fact that Small-Caps couldn’t hold such a pivotal level sets an ominous tone for the broader market. Brian points out that it’s common to see price overshoot a key support level before a significant upside reversal. However, $IWM needs to reclaim broken support at $163 first.
Quote of the Day
“Sometimes you win,
sometimes you learn.”
– John Maxwell
Top Links
Stocks Continue to Decline Under the 5 Day Moving Average -Alphatrends
Brian Shannon analyzes this week’s price action and lays out some key levels to watch next week.
When Does Correction End? – All Star Charts
JC Parets looks at the year-end outlook for Stocks.
The Checklist for a Stock Market Bounce – CappThesis
Frank Cappelleri outlines the necessary ingredients for a rebound in the S&P 500.
Technology Stocks Testing Highly Influential Dual Support – Kimble Charting Solutions
Chris Kimble points out that the largest sector of the S&P 500 is testing a crucial support level.
Bonds Now Beating Stocks as NVDA Goes into Tailspin – StockCharts.com
Julius de Kempenaer explains that Bonds could outperform Stocks in the near term as Mega-Caps appear vulnerable.
Top Tweets
Another tough week for the S&P 500 🔻 $SPY
How did you trade this week? pic.twitter.com/yozJtWy9l1
— TrendSpider (@TrendSpider) October 27, 2023
$SPY confirms last week's bearish engulfing pic.twitter.com/O5lJY5OAH9
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) October 27, 2023
Sellers are gaining momentum
Yesterday, $SPX fell below its Feb & Apr highs and the 38% Fibonacci retracement
Today, it is violating both the AVWAP from ATH and AVWAP from last year's low
Momentum is oversold for the 2nd time this month pic.twitter.com/AW8D3dn1SA
— Steven Strazza (@sstrazza) October 27, 2023
S&P 500 #spx $spy closes below its 3-year moving average. pic.twitter.com/P27V0YIJrC
— Nautilus Research (@NautilusCap) October 27, 2023
The average year for the S&P 500 (since 1950) bottoms today. pic.twitter.com/0sDt6oqYis
— Ryan Detrick, CMT (@RyanDetrick) October 27, 2023
The bull market's first 10% drop.
Before you bail, remember that seven out of the last 10 bulls dealt with at least one 10%+ drop in the first two years.
This is normal. pic.twitter.com/xk42i5ETxY
— Callie Cox (@callieabost) October 27, 2023
$RUT small caps closing below critical support levels today pic.twitter.com/w00Dd1Kye0
— Dash, CMT, CFP (@Dash_charts) October 27, 2023
Here's a look at the rolling 5-year percentage change of the Russell 2,000 as it nears 0 again: pic.twitter.com/ZoMC2V9f2k
— Bespoke (@bespokeinvest) October 27, 2023
We all see it. We all see it.$GLD pic.twitter.com/vYH43rYZCJ
— David Rath, CMT, CFA (@DJwrath) October 27, 2023
Gold has underperformed the S&P for 12 years.
Is now Gold's time to shine?$GLD $SPY pic.twitter.com/3LK29LkuY5
— Amol Desai (@LatticeworkInv) October 27, 2023
Last one I swear pic.twitter.com/eRk0tqV7ou
— Arun S. Chopra CFA CMT🧐 (@FusionptCapital) October 27, 2023