Daily Chart Report ? Friday, July 29th, 2022
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Today’s Summary
Friday, July 29th, 2022
Indices: Nasdaq 100 +1.81% | S&P 500 +1.42% | Dow +0.97% | Russell 2000 +0.65%
Sectors: 9 of the 11 sectors closed higher. Energy led, gaining +4.34%. Consumer Staples lagged, falling -0.77%.
Commodities: Crude Oil futures rose +1.95% to $98.30 per barrel. Gold futures gained +0.76% to $1,783 per ounce.
Currencies: The US Dollar Index dropped -0.36%.
Crypto: Bitcoin inched lower by -0.37% to $23,766. Ethereum fell -1.15% to $1,706.
Interest Rates: The US 10-year Treasury yield dropped to a 3-month low of 2.654%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Percent of $SPX stocks at 20-day new highs rose above 55% for first time since June 2020 (concept thanks to Jeff DeGraaf). This marks the 3rd breadth thrust signal in the last 8 trading sessions. Broader than off the March and May lows. @WillieDelwiche @RenMacLLC pic.twitter.com/ofhLRPyyv8
— Ed Clissold (@edclissold) July 29, 2022
Today’s Chart of the Day was shared by Ed Clissold (@edclissold). Several technicians have noted that a rare breadth thrust triggered yesterday. The percentage of S&P 500 stocks at 20-day highs spiked above 55% for the first time since June 2020. This signal, popularized by Jeff deGraaf, often marks the start of a multi-month rally. Of course, no indicator is perfect and there have been some notable failures, such as in 2002 & 2011. This doesn’t guarantee that the bottom is in, but it does strengthen the bull case.
Quote of the Day
“Bad times have a scientific value. These are occasions a good learner would not miss.”
- Ralph Waldo Emerson
Top Links
Why Jeff deGraaf Says 20-Day Highs are Important? - Renaissance Macro Research
In this quick clip, Jeff deGraaf explains why the spike in 20-day highs is meaningful.
Nasdaq Month End Analysis - StockCharts
Greg Schnell takes a look at what could be next for the Nasdaq after the index had its best month since April 2020.
US Dollar Forms Large Bearish Reversal Pattern, Weakness Ahead? - See it Market
Chris Kimble points out that the red-hot US Dollar formed a bearish reversal candlestick in July.
When Does it Make Sense to "Buy the Dip" - Research by Potomac
Drew Wells explains how to "Buy the Dip" responsibly.
August's First Trading Day Weakest of All - Almanac Trader
Seasonality expert, Jeff Hirsch examines how the major averages have historically performed on the first trading day in August.
Top Tweets
You’re all caught up now. Thanks for reading!