Daily Chart Report ? Tuesday, May 10th, 2022
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Today’s Summary
Tuesday, May 10th, 2022
Indices: Nasdaq 100 +1.30% | S&P 500 +0.25% | Russell 2000 -0.02% | Dow -0.26%
Sectors: 4 of the 11 sectors closed higher. Tech led, gaining +1.52%. Real Estate lagged, falling -2.22%.
Commodities: Crude Oil futures moved lower by -3.23% to $99.76 per barrel. Gold futures fell -0.95% to a three-month low of $1,841 per ounce.
Currencies: The US Dollar Index rose +0.16% to its highest level since 2002.
Crypto: Bitcoin gained +1.75% to $30,608. Ethereum rose +3.28% to $2,302.
Interest Rates: The US 10-year Treasury yield fell to 2.997%.
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 Willie Delwiche (@WillieDelwiche). The terms bull market and bear market originate from the way in which the two animals fight. Bulls fight with their horns plowing upwards and bears fight with their claws thrashing downwards. Nowadays, the media defines a bear market as a 20% decline from all-time highs on a closing basis. While the S&P 500 hasn’t reached that threshold just yet, it’s pretty safe to label this a bear market. Willie points out that the Value Line Geometric Index, which measures the ‘average stock,’ has joined the Nasdaq and the Russell 2000 in official bear market territory, down more than 20% from its highs. More importantly, it’s below its 2018 highs and its pre-Covid highs. Further pain is likely unless these levels are reclaimed soon.
Quote of the Day
“Interest rates are to asset prices what gravity is to the apple. When there are low interest rates, there is a very low gravitational pull on asset prices.”
– Warren Buffett
Top Links
There Will Be Rallies – PFT Trading
Greg Rieben takes a look at bear market rallies.
The Nasdaq’s Three Day 10% Drop – Bespoke
Bespoke points out that the Nasdaq Composite dropped more than 10% in the three days prior to today.
Riding the Rapids | Who Charted? – Potomac Fund Management
In this quick video, Dan Russo and Drew Wells highlight six noteworthy charts in six minutes.
Commodity Currencies Crumble – All Star Charts
The team at All Star Charts examines what the Aussie Dollar and the Canadian Dollar could be signaling for Commodities.
Update: 1970 Redux vs/ 1962 & 1974 – Almanac Trader
Jeff Hirsch points out that this year continues to look like 1970.
Top Tweets
You’re all caught up now. Thanks for reading!