Daily Chart Report ? Wednesday, October 19th, 2022
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Today’s Summary
Wednesday, October 19th, 2022
Indices: Dow -0.33% | Nasdaq 100 -0.40% | S&P 500 –0.67% | Russell 2000 -1.72%
Sectors: 2 of the 11 sectors closed higher. Energy led by a wide margin, gaining +2.95%. Real Estate lagged, dropping -2.51%.
Commodities: Crude Oil futures rose +2.99% to $84.52 per barrel. Gold futures dropped -1.31% to $1,634 per ounce.
Currencies: The US Dollar Index rose +0.81%.
Crypto: Bitcoin moved lower by -0.78% to $19,184. Ethereum fell -1.33% to $1,293.
Interest Rates: The US 10-year Treasury yield rose to its highest level since 2008 at 4.138%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared by Larry Thompson (@HostileCharts). It’s a daily candlestick chart of the Technology sector ($XLK) over the past year. Tech makes up more than 25% of the S&P 500, making it the largest sector by a mile. It’s currently down more than 31% from its peak, which is about the same as its Covid drawdown. Even with the recent bounce, Tech remains structurally damaged. Larry points out that it’s been unable to reclaim its June lows, around $121. Momentum is diverging positively, but it’s really all about those June lows. Keep an eye on how price behaves at that key level in the near term.
Quote of the Day
“You don’t need to know what’s going to happen next in order to make money.”
– Mark Douglas
Top Links
Why Stocks Likely Just Bottomed – Carson Group
Ryan Detrick outlines the bull case for the S&P 500.
S&P 500 Hasn’t Done This Since 2018 – Schaeffer’s Investment Research
Rocky White examines how the S&P 500 has historically performed after an outside day.
Never Show Weakness in this Environment | Two and a Half CMTs – Research by Potomac
In this video, the team at Potomac highlights six noteworthy charts.
Technical Analysis with Frank Cappelleri – TD Ameritrade Network
Frank Cappelleri shares his thoughts on the Russell 2000 vs. the Nasdaq.
Halloween Indicator, Sell in May, Call it What You Will, It Works – Almanac Trader
Seasonality expert, Jeff Hirsch points out that we’re approaching what has historically been the best six months of the year for stocks (November-April).
Top Tweets
You’re all caught up now. Thanks for reading!