Daily Chart Report ? Monday, January 31st, 2022
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Today’s Summary
Monday, January 31st, 2022
Indices: Dow +1.17% | S&P 500 +1.89% | Nasdaq +3.41% | Russell 2000 +3.05%
Sectors: All 11 sectors closed higher. Consumer Discretionary led, gaining 3.85%. Consumer Staples lagged, but still rose 0.38%.
Commodities: Crude Oil futures moved higher by 1.53% to a seven-year high of $88.15 per barrel. Gold futures rose 0.55% to $1,796 per ounce.
Currencies: The US Dollar Index dropped 0.59%.
Interest Rates: The US 10-year Treasury yield inched higher to 1.780%
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day comes from by Ari Wald of Oppenheimer (@AriWald). It’s a weekly bar chart of the S&P 500 over the past two years. The S&P 500 fell 5.26% in January, marking its worst month since March 2020. To be fair, the index has pretty much doubled since then with little interruption, so a corrective period could be viewed as healthy in the long run. Ari uses Elliot Wave theory to show that this appears to be the start of a three-wave correction that could last through the first half of the year. According to Elliot Wave theory, corrective phases are made up of three distinct waves – A, B, and C. January’s price action formed what looks like the initial A-Wave. We could be in the midst of the B-wave now, which is a deceptive sucker rally. The C-wave that follows is the final washout of the corrective phase, which we could see in the coming months. On a brighter note, Ari points out that another leg lower “should create the secular bull market’s next big opportunity.”
Quote of the Day
“Don’t worry about what the markets are going to do, worry about what you are going to do in response to the markets.”
– Michael Carr
Top Links
Massive Month-End Buying of Biggest Losers – Bespoke
Bespoke points out that the rally over the past few days has been led by beaten-down stocks.
Who Let The Bears Out? Most Pessimistic Investor Sentiment Since 2013 – LPL Financial Research
The team at LPL Financial Research takes a look at how the S&P 500 has historically performed following extremely bearish sentiment readings.
Living on a Prayer – All Star Charts
JC Parets tells readers to keep an eye on the October lows in the major indices.
Hopium – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some of the most important technical developments across the markets right now.
Weekly S&P 500 Chart Storm – TopDown Charts
Callum Thomas highlights 10 noteworthy charts.
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You’re all caught up now. Thanks for reading!
