Daily Chart Report ? Friday, July 23rd, 2021
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Today’s Summary
Friday, July 23rd, 2021
Indices: US Stocks ended the week on a positive note. The Dow, S&P 500, and Nasdaq all closed at record highs. The Dow rose 238 points or 0.68%, closing above 35,000 for the first time. The S&P 500 and Nasdaq gained 1.01% and 1.04%, respectively. The Russell 2000 underperformed, rising 0.46%.
Sectors: 10 of the 11 sectors closed higher. Communications led, gaining 2.48%. Energy lagged, falling 0.37%.
Commodities: Crude Oil futures inched higher by 0.22% to $72.07 per barrel. Gold inched lower by 0.20% to $1,802 per ounce.
Currencies: The US Dollar Index ticked higher by just 0.08%.
Interest Rates: The 10-year US Treasury yield fell to 1.278%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Andrew Thrasher (@AndrewThrasher). It's a chart of the S&P 500 over the past three months, along with four important risk ratios below. The week ended on a positive note, with the S&P 500 closing at a record high. While the index drifts higher, several key risk ratios continue to diverge, suggesting caution is warranted. Andrew points out that Small-Caps ($IWM), High Beta ($SPHB), and Equal-Weight ($RSP) are all still deteriorating on a relative basis. These divergences suggest narrow leadership and waning risk appetite. When it comes to divergences, legendary technician, Martin Pring once said it best; "A divergence is like a weather forecast of rain. When you hear the forecast on the radio, you go out with an umbrella. But the forecast is no guarantee of rain, just a warning sign that you should be prepared."
Quote of the Day
"A mind is like a parachute. It doesn't work if it is not open."
– Frank Zappa
Top Links
Weekly Market Performance – Strong Week for Growth Stocks as Earnings Season is Underway - LPL Financial Research
The team at LPL Financial Research breaks down this week's market performance.
XLE Bids to End Correction and Resume Uptrend - StockCharts.com
Arthur Hill examines the outlook for the Energy sector.
Stock Market & Bitcoin Analysis July 23, 2021 - AlphaTrends
Brian Shannon analyzes this week's price action in Stocks and Crypto.
Will Green Metals Lead the Way? - All Star Charts
Ian Cully points out that green metals are showing relative strength (Lithium, Cobalt, Copper, Nickel).
August Has Been A Dangerous Month for the Market - Almanac Trader
Jeff Hirsch takes a look at how stocks have historically fared in August.
Top Tweets
You’re all caught up now. Thanks for reading!