Daily Chart Report ? Thursday, January 27th, 2022
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Today’s Summary
Thursday, January 27th, 2022
Indices: Dow -0.02% | S&P 500 -0.54% | Nasdaq -1.40% | Russell 2000 -2.29%
Sectors: 6 of the 11 sectors closed higher. Energy led, gaining 1.09%. Consumer Discretionary lagged, falling 2.42%.
Commodities: Crude Oil futures slipped 0.85% to $86.61 per barrel. Gold futures dropped 2.00% to $1,793 per ounce.
Currencies: The US Dollar Index rose 0.75% to a new 52-week high.
Interest Rates: The US 10-year Treasury yield fell to 1.803%
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 by Macro Charts (@MacroCharts). The S&P is currently down nearly 10% from its highs, but that has been enough to force the bears out of hibernation in a big way. The Bull-Bear spread from the latest AAII Sentiment Survey just plunged to its lowest level since 2013. That’s worse than March 2020 or December 2018, when the S&P 500 had dropped roughly 30% and 20%, respectively. As Macro Charts points out, this level of extreme bearishness is often seen at market bottoms. Survey data has its flaws, so we want to take this with a grain of salt. But overall, it’s encouraging to see this level of pessimism as the S&P 500 continues to test crucial support around 4300.
Quote of the Day
“Everyone’s got the brainpower to do well in the stock market. The question is, whether you have the stomach for it.”
– Peter Lynch
Top Links
Don’t Sweat the S&P 500’s Pullback to This Key Trendline – Schaeffer’s Investment Research
Rocky White examines what has historically happened after the S&P 500 breaks its 200-day moving average while sentiment is extremely bearish.
Extreme Bearish Sentiment – Bespoke
Bespoke takes a look at the jump in bearish sentiment.
Why Are Stocks Going Down? – All Star Charts
JC Parets shares his thoughts on the current market environment.
Breadth So Bad, It’s Good? – Potomac Fund Management
Dan Russo examines the continued deterioration in market breadth.
Inflation or Deflation? Depends on What the Commodity Index Does Next! – Kimble Charting Solutions
Chris Kimble points out that the CRB Index is testing a major long-term level.
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Top Tweets
Here’s some perspective on former levels of interest where the buyers might finally show up pic.twitter.com/fHnP0iLcRo
— J.C. Parets (@allstarcharts) January 27, 2022
You’re all caught up now. Thanks for reading!
