Daily Chart Report 📈 Friday, July 21, 2023

July 21, 2023

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Today’s Summary
Friday, July 21, 2023

Indices: S&P 500 +0.03% | Dow +0.01% | Nasdaq 100 -0.26% | Russell 2000 -0.35%

Sectors: 7 of the 11 sectors closed higher. Utilities led, gaining +1.50%. Communications lagged, falling -1.00%.

Commodities: Crude Oil futures rose +1.88% to $77.07 per barrel. Gold futures fell -0.22% to $1,967 per oz.

Currencies: The US Dollar Index rose for the fourth straight day, gaining +0.26% to $101.09.

Crypto: Bitcoin moved higher by +0.43% to $29,934. Ethereum was flat and continues to trade around $1,893.

Interest Rates: The US 10-year Treasury yield fell to 3.841%.

Here are the best charts, articles, and ideas being shared on the web today!

Chart of the Day

$QQQ Topping tail right where we broke down in early 2022.
Could be time for a short term rest or pullback. pic.twitter.com/oCU3j4Oucu
— Michael Nauss, CMT, CAIA (@MichaelNaussCMT) July 21, 2023

Today’s Chart of the Day was shared by Michael Nauss (@MichaelNaussCMT). The Nasdaq 100 was the only major index that closed lower this week, falling -0.90% overall. Michael points out that the long tail on this week’s candle indicates short-term exhaustion. It makes sense that $380 is proving to be resistance for $QQQ, as dip-buyers were murdered at this level when the prior bull market ended. $380 acted as support three times before eventually breaking in January 2022. From there, it slid -30%, leaving dead bodies or overhead supply at $380. After a historic rally in the first half of 2023, the Nasdaq can afford some short-term weakness. A period of digestion could be considered healthy and necessary to sustain a long-term uptrend. Also, the Nasdaq seems to be passing the baton to the Dow and Russell 2000, allowing these two laggards to potentially catch up to the tech-heavy leaders (Nasdaq & S&P 500).

Quote of the Day

"To be successful in life, you must get in the habit of turning negatives into positives."

–George Foreman

Top Tweets

Some red in the bigger (more important) names, but not a bad week overall. Homebuilders got hit, but after the run they've been on, probably need to cut them some slack. Semis also a little red. But big picture...majority green. pic.twitter.com/w1KAYdR2wo
— Ian McMillan, CMT (@the_chart_life) July 21, 2023

The Dow Jones finished the day up 0.01% for its 10th consecutive green day, the longest winning streak since August 2017 pic.twitter.com/JiAOgq85Jt
— Barchart (@Barchart) July 21, 2023

Going back to 1900, there have only been 18 prior 10-day winning streaks for the oldest US index.

That's about one every 7 years on average! pic.twitter.com/64m9tQJIsR

— Matt Weller CFA, CMT (@MWellerFX) July 21, 2023

Here's what happens historically after the Dow has a 10-day winning streak
(n=15 back to 1920)https://t.co/pSSczwVN4a pic.twitter.com/Fj1i8wZif3
— jaredblikre.ai (@SPYJared) July 21, 2023

The S&P 500 has crossed above the 76.4% retracement of its peak-to-trough decline. After all declines of 20%+ (bear markets) since 1929, the retracement proved the start of a new uptrend. No retests of former lows. Gains post the 76% retrace were stronger than average - see below pic.twitter.com/fUqvD0AfVi
— Gina Martin Adams (@GinaMartinAdams) July 21, 2023

What is your favorite chart this week?

I've gotta say banks breaking out and making new relative strength highs is up there for me. pic.twitter.com/2MfMG5kI2p
— Ryan Detrick, CMT (@RyanDetrick) July 21, 2023

$IWM
Here's a chart for all my bearish folks!

Not much of an explanation is needed

We will see how the broader markets react next week pic.twitter.com/gXPu1ICVeJ
— Spencer (@SpencerParsons0) July 21, 2023

$NYA Weekly. File this under "not bearish." pic.twitter.com/E0SgMho0jN
— Brian G (@alphacharts) July 21, 2023

Earlier this week high-yield spreads hit their lowest level since the Fed tightening cycle began pic.twitter.com/K2eN1BXYxa
— Scott Brown, CMT (@scottcharts) July 21, 2023

$UGA big ole weekly candle. To $69
52wk high. #gasoline pic.twitter.com/ifBYpylfgl
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) July 21, 2023

Commodities & the US dollar are usually inversely correlated, but for much of the last two years they've become more positively correlated (i.e., moving together). Given commodities are typically priced in USD, one would expect this to revert back to "usual." pic.twitter.com/dIUEv8vFIb
— Liz Young Thomas (@LizThomasStrat) July 21, 2023

$DXY

The dollar index is back to $101 where significant trading has taken place.

Both the 50-day and 200-day are falling with price at a critical spot. pic.twitter.com/PwJ8fNgiZM
— Tyler Lovingood (@Tyler_Lovingood) July 21, 2023

you know who is having a week? pic.twitter.com/PalnvqcQgr
— Tom Hearden (@followtheh) July 21, 2023

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Daily Chart Report 📈 Friday, July 21, 2023

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