Daily Chart Report ? Friday, March 10th, 2023
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Today’s Summary
Friday, March 10th, 2023
Indices: Dow -1.07% | Nasdaq 100 -1.38% | S&P 500 -1.45% | Russell 2000 -2.95%
Sectors: All 11 sectors closed lower. Consumer Staples led but still fell -0.49%. Real Estate lagged, dropping -3.19%.
Commodities: Crude Oil futures rose +1.27% to $76.68 per barrel. Gold futures rose +1.78% to $1,867 per ounce.
Currencies: The US Dollar Index fell -0.61% to $104.64.
Crypto: Bitcoin fell -0.72% to $20,220. Ethereum fell -0.43% to $1,432.
Interest Rates: The US 10-year Treasury yield dropped to 3.703%.
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 on Twitter by Stacey Lee (@BBaxter2020). On top, it’s a chart of the S&P 500 over the past two years. On the bottom, is a ratio chart of Treasury Bonds vs. High Yield Bonds (IEI/HYG), which serves as a proxy for credit spreads. The S&P 500 dropped 4.55% this week, marking its worst week since September. We lost some key support levels this week including the 200-day moving average and the AVWAP from the peak. Stacey points out that the S&P also broke below the uptrend line that has been in place since the October lows. To make matters worse, credit spreads are beginning to widen out, with IEI/HYG breaking out of an 8-month downtrend line. This is not a bullish look for equities as widening credit spreads are often a sign of stress in the markets.
Quote of the Day
“When people talk listen completely. Don’t be thinking what you’re going to say. Most people never listen. Nor do they observe.”
– Ernest Hemingway
Top Links
This Doesn’t Happen Often – Bespoke
Bespoke examines the sharp drop in the 2-year US Treasury yield.
Here’s Why Banks are Breaking – All Star Charts
Ian Culley looks at the sell-off in Regional Banks and the inverted yield curve.
Commodities Bearish Pattern Suggesting Lower Inflation – Kimble Charting Solutions
Chris Kimble points out that Commodities are attempting to break down.
SPY Dips But Tech is Now Back on Track – StockCharts
Julius de Kempenaer takes a look at sector rotation within the S&P 500.
Catch a Falling Knife – The Compound and Friends
In this podcast, Josh Brown, Michael Batnick, Carleton English, and Joe Fahmy discuss the current state of the markets.