Daily Chart Report ? Monday, May 2nd, 2022
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Today’s Summary
Monday, May 2nd, 2022
Indices: Nasdaq 100 +1.72% | Russell 2000 +1.01% | S&P 500 +0.57% | Dow +0.26%
Sectors: 6 of the 11 sectors closed higher. Communications led, gaining +2.76%. Real Estate lagged, falling -2.60%.
Commodities: Crude Oil futures moved higher by +0.46% to $105.17 per barrel. Gold futures dropped -2.52% to $1,864 per ounce.
Currencies: The US Dollar Index rose +0.38%.
Crypto: Bitcoin rose +0.30% to $38,600. Ethereum gained +1.41% to $2,865.
Interest Rates: The US 10-year Treasury yield rose to 2.985% – its highest level in more than 3 years.
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 Jason Goepfert (@jasongoepfert). The Nasdaq managed to close higher by 1.72% today after falling more than 1% intraday and hitting a new 52-week low. While today’s reversal may feel bullish, Jason points out that this sort of price action is often witnessed in bear markets. As you can see from the table, forward returns for the Nasdaq are negative across the board. It wouldn’t be surprising to see a relief rally in the near term given how bearish sentiment is right now. However, longer-term trends remain damaged, and it’s going to be hard to trust any potential rally that occurs beneath a downward sloping 200-day moving average. The Nasdaq could rally 15% from here and it would still be below a declining 200-day moving average.
Quote of the Day
“There are no atheists in a foxhole, and there are no pure fundamentalists in a market correction.”
– Josh Brown
Top Links
Support Begins to Give Way – Potomac Fund Management
Dan Russo highlights some key points about the current market environment.
Historic End to a Down Month – Bespoke
Bespoke points out that Friday was the 2nd worst close to a month in the history of $SPY.
Recent 21-Year May Seasonal Pattern: More Chop Likely – Almanac Trader
Seasonality expert, Jeff Hirsch examines how stocks have historically performed in May.
It Feels Worse – The Irrelevant Investor
Michael Batnick explains why the S&P 500’s 13% correction feels even worse than it is.
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Top Tweets
You’re all caught up now. Thanks for reading!