Daily Chart Report ? Tuesday, October 4th, 2022
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Today’s Summary
Tuesday, October 4th, 2022
Indices: Russell 2000 +3.91% | Nasdaq 100 +3.14% | S&P 500 +3.06% | Dow +2.80%
Sectors: All 11 sectors closed higher by more than +1.5%. Energy led by a wide margin, gaining +4.30%. Consumer Staples lagged but still rose +1.52%.
Commodities: Crude Oil futures moved higher by +3.46% to $86.52 per barrel. Gold futures rose +1.67% to $1,731 per ounce.
Currencies: The US Dollar Index had its worst day since March 2020, dropping -1.31%.
Crypto: Bitcoin rose +3.44% to $20,312. Ethereum gained +2.80% to $1,361.
Interest Rates: The US 10-year Treasury yield fell to 3.627%.
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 David Zarling (@AdaptivCharts). It’s a 1-hour candlestick chart of the S&P 500 year-to-date. David points out that the S&P 500 has stranded the bears on a deserted island. We’re talking about a bullish island reversal pattern. This pattern is formed with two gaps that leave a cluster, or island, of isolated price action. In this case, price gapped lower on Sept. 22nd and chopped around for the next six days before gapping higher this morning. You could also call this a false breakdown, given that we’ve reclaimed the June lows. Call it whatever you want…an island reversal, false breakdown, bear trap, whatever! The point is, the S&P 500 is set up for a countertrend rally in the near term. Don’t let the silly names fool you, there is a lot of market psychology behind these chart patterns.
Quote of the Day
“It is not good to be too curious about all the reasons behind price movements.”
– Jesse Livermore
Top Links
Was that the Bottom? – The Irrelevant Investor
Michael Batnick takes a look at prior instances where the S&P 500 gained 5% or more in two days like we’ve seen this week.
Historically This is One of the Greatest Buying Opportunities – BNN Bloomberg
JC Parets explains why he thinks this is a buying opportunity for Stocks.
Third Quarter Recap – Means to a Trend
Austin Harrison highlights some key takeaways from Q3.
Gold & Silver – From Failed Moves Come Fast Moves – PFT Trading
Greg Rieben takes a look at the false breakdown in Precious Metals.
You Weren’t Supposed to See That – The Reformed Broker
Here’s a good read from Josh Brown on US Economy and how we got to this point.
Top Tweets
You’re all caught up now. Thanks for reading!