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Today’s Summary
Tuesday, November 30th, 2021
Indices: Dow -1.86% | S&P 500 -1.90% | Nasdaq -1.55% | Russell 2000 -1.92%
Sectors: All 11 sectors closed lower. Tech led, but still fell 0.83%. Communications lagged, dropping 3.17%.
Commodities: Crude Oil futures tumbled 5.39% to a three-month low of $66.18 per barrel. Gold futures fell 0.49% to $1,777 per ounce.
Currencies: The US Dollar Index slipped 0.31%.
Interest Rates: The US 10-year Treasury yield dropped to 1.449%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
It took $RTY eight months to break out and exactly 15 days to plunge into a 10% correction. pic.twitter.com/srJjWPT6Od
— Elena Popina (@lena_popina) November 30, 2021
Today’s Chart of the Day was shared by Elena Popina (@lena_popina). It’s a chart of the Small-Cap Russell 2000 Index over the past year. There’s an old adage about failed breakouts – “from failed moves come fast moves in the opposite direction”….and that’s exactly the case for the Russell 2000 right now. The index broke out to an all-time high at the beginning of the month after being stuck in a tight range for the majority of the year. That breakout quickly failed, and it has taken just 15 trading days for the Russell to fall 10% (9.98% on a closing basis to be exact). Small-Caps often lead the broader market higher or lower. So, it’s concerning to see them fall so precipitously. If the Russell 2000 can’t catch a bid soon, it would suggest further downside for the broader market.
Quote of the Day
“When the time comes to buy, you won’t want to.”
– Walter Deemer
Top Links
First Trading Day of December: Leans Bearish but Numerous Sizeable Gains – Almanac Trader
Seasonality expert, Jeff Hirsch examines how stocks have historically performed on the first trading day of December (tomorrow).
Who Charted? – The Start of Something Bigger? – Potomac Fund Management
In this quick video, Dan Russo and Drew Wells break down 6 charts in 6 minutes.
Technology and Communication Services Diverge – Bespoke
Bespoke points out that two historically correlated sectors are moving in opposite directions.
Divergence is Back – StockCharts.com
Julius de Kempenaer takes a look at the leading and lagging sectors of the S&P 500.
Bitcoin’s Successful Test of Support in Weekend Sell-Off Puts it Back on Track to Rise 53% From Current Levels, Katie Stockton Says – Business Insider
Katie Stockton shares her technical perspective on Bitcoin.
Top Tweets
50dma, anyone? $SPX pic.twitter.com/sTAFRB0Z6r
— Mark Ungewitter (@mark_ungewitter) November 30, 2021
Important spot. $SPX pic.twitter.com/1ooN1mC6uX
— Frank Cappelleri (@FrankCappelleri) November 30, 2021
I suspect we're close to (or already at) a tradable "buy the dip level" and while the $DIA is the chart, it has implications for the whole market. $SPY $QQQ $IWM
A decline below the 200 SMA, and it gets very very tricky. Will be interesting to see where the market closes today. pic.twitter.com/rODlYiNyRy
— Sam McCallum ??????? (@honeystocks1) November 30, 2021
Nasdaq 100 is less than 2% from a 52wk high but has over 5% of stocks at a 52-week low.
This level of breakdown in breadth has not historically been positive and creates a major headwind for bulls going into year-end.$QQQ pic.twitter.com/BBMdDYxcmj— Andrew Thrasher, CMT (@AndrewThrasher) November 30, 2021
We have to go all the way back to April 2020 to see NYSE New Lows at this level…$SPY $QQQ $IWM pic.twitter.com/5d3y3T1s5L
— Greg Rieben (@gregrieben) November 30, 2021
Small-caps began the month making new highs and are finishing the month looking at their first 10% drawdown in over a year (and one of the fastest such moves ever). pic.twitter.com/WwtGHhAqrL
— Willie Delwiche (@WillieDelwiche) November 30, 2021
The more I stare at $IWM the more I realize it has a particular habit of failed breakouts after long consolidation periods pic.twitter.com/kdOC1OCsbG
— Rolando Santos (@TKPTrader) November 30, 2021
Micro Caps, which never broke out to new highs like their Small Cap brethren, have once again returned to the bottom of their range…$IWC pic.twitter.com/dpEvdLGyfp
— Ian McMillan, CMT (@the_chart_life) November 30, 2021
Update as oil took another sharp leg lower … crude now in bear market territory; drawdown worst since November 2020 pic.twitter.com/brG7pRksx4
— Liz Ann Sonders (@LizAnnSonders) November 30, 2021
#Inflation expectations ease as wholesale prices drop. Bloomberg commodity index breaking below 100-day moving average. pic.twitter.com/yhpqlcBMgn
— Kathy Jones (@KathyJones) November 30, 2021
“The S&P GSCI U.S. Commodity Price Index has been declining for more than a month; it has fallen 10% since October 24th—marking its largest drop of the recovery. This has left commodity prices essentially unchanged for the last five months ..” @LeutholdGroup pic.twitter.com/e9p3Vtq3Tg
— Carl Quintanilla (@carlquintanilla) November 30, 2021
About that inflation narrative…$DBA $DBB $DBC $TLT pic.twitter.com/IEXzr2F9PI
— Brian G (@alphacharts) November 30, 2021
The bond market is shooting first and asking questions later pic.twitter.com/jHTsOSSCwj
— Drew Wells, CMT, CIMA® (@DrewTheCharts) November 30, 2021
Ethereum trying to make its move? pic.twitter.com/bTzv4F2A6w
— J.C. Parets (@allstarcharts) November 30, 2021
If you're ignoring $AAPL just because it's $AAPL, you're missing one hell of a chart at the moment.
Like it or not, there's no "creativity bonus" in this game. Only price pays! pic.twitter.com/sQYteQh96c
— Grayson Roze (@GraysonRoze) November 30, 2021
The 3 stock rally. pic.twitter.com/vsnOoA5pTD
— Arun S. Chopra CFA CMT? (@FusionptCapital) November 30, 2021
You’re all caught up now. Thanks for reading!