Daily Chart Report ? Tuesday, February 22nd, 2022
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Today’s Summary
Tuesday, February 22nd, 2022
Indices: Dow -1.42% | S&P 500 -1.01% | Nasdaq -1.23% | Russell 2000 -1.45%
Sectors: All 11 sectors closed lower. Utilities led, but still slipped 0.11%. Consumer Discretionary lagged, dropping 2.92%.
Commodities: Crude Oil futures rose 1.88% to $91.91 per barrel. Gold futures gained 0.40% to $1907 per ounce.
Currencies: The US Dollar Index inched lower by 0.07%.
Interest Rates: The US 10-year Treasury yield rose to 1.941%.
**Reminder: The US Stock Market & Bond Market will be closed Monday, February 21st for Presidents’ Day**
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 Michael Kahn (@mnkahn). The S&P 500 has formed a textbook head & shoulders top over the past six months. According to the textbook, this bearish pattern would signal ~10% further downside if we break neckline support around 4300. The problem is that this pattern has become glaringly obvious at this point. We’re all watching the same movie here. To quote Joe Granville, “If it’s obvious, it’s obviously wrong.” That being said, 4300 remains an important support level for the S&P 500. A close below that level would open the door for further downside risk. One thing is for sure – if this head & shoulders top does end up playing out according to the textbook, it will be one of the more anticipated technical tops that we’ve seen in recent history.
Quote of the Day
“We’re in the regret business. If you buy and it goes up, you regret not buying more. If you buy and it goes down, you regret buying.”
– David Lundgren
Top Links
How Options Expiration Keeps Crushing the Stock Market – The Reformed Broker
Josh Brown points out that stocks have been selling off around monthly OpEx over the past couple of years.
The Trade of a Generation – All Star Charts
JC Parets takes a look at Tech vs. Energy.
The Giants of Tomorrow – Murphy Charts
Shane Murphy examines the historical weightings of the S&P 500’s top 10 constituents, and the rarity of companies to stay in the top 10 over time.
Orderly – The Weekly Trend
In this podcast, David Zarling, Dan Gorghuber, and Ian McMillian discuss some of the most noteworthy technical developments across the markets.
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Top Tweets
You’re all caught up now. Thanks for reading!
