Daily Chart Report 📈 Wednesday, August 16, 2023

August 16, 2023

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Today’s Summary
Wednesday, August 16, 2023

Indices: Dow -0.52% | S&P 500 -0.76% | Nasdaq 100 -1.07% | Russell 2000 -1.28%

Sectors: 10 of the 11 sectors closed lower. Utilities was the only sector that closed higher led, rising +0.44%. Consumer Discretionary lagged, dropping -1.24%.

Commodities: Crude Oil futures dropped -1.99% to $79.38 per barrel. Gold futures fell for the eighth straight day, by -0.36% to $1,928 per oz.

Currencies: The US Dollar Index rose +0.24% to a two-month high of $103.45.

Crypto: Bitcoin dropped -1.61% to $28,701. Ethereum fell -1.19% to $1,806.

Interest Rates: The US 10-year Treasury yield broke out to a 15-year high of of 4.252%.

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

Chart of the Day

10y Treasury yield now at highest since June 2008 pic.twitter.com/jO0Cuoaaqh
— Liz Ann Sonders (@LizAnnSonders) August 16, 2023

Today’s Chart of the Day was shared by Liz Ann Sonders (@LizAnnSonders). The US 10-year Treasury yield broke out to a 15-year high today. It peaked last October, around the same time the S&P 500 bottomed. It's formed a 10-month base since then, and it looks ready to resume its uptrend. Stocks have pulled back on the heels of this resurgence in yields. Growth stocks are particularly sensitive to rising yields, as the opportunity cost of holding these long-duration assets becomes greater as yields rise. To make matters worse, the US dollar is also putting pressure on stocks as $DXY reached a two-month today. The wrecking balls of 2022 are making an ominous comeback, and stocks are starting to notice.

Quote of the Day

“I used to think that if there was reincarnation, I wanted to come back as the President, or the Pope, or as a .400 baseball hitter. But now, I would want to come back as the bond market. You can intimidate everybody.”

- James Carville

Trendlines over Headlines

https://youtu.be/LVNFfA9ymmk

The latest episode of Trendlines > Headlines is out!

This week, JC O’Hara joins us to make sense of the markets. JC is a technical strategist at Roth MKM. In the episode, we look at several noteworthy charts and discuss:

The S&P 500
Sentiment
Weakness in Tech Stocks
Strength in Energy Stocks
Commodities, and more!

Top Tweets

Daily Mkt Mood: Risk-Off

1. Stocks down
2. $SPX -2%+ last 2 days
3. Tech declines more than 1%
4. Yields climb
5. Dollar up

FOMC minutes pretty hawkish. More hikes may be necessary. Inflation still a real concern.

Stocks noticed as decline for worst month of 2023 deepens.
— Abigail Doolittle (@TheChartress) August 16, 2023

How big is the current stock market correction?

The largest since March (which ended with the bank failures).

S&P 500 pic.twitter.com/eALmHjPUpD
— Jim Bianco (@biancoresearch) August 16, 2023

So far, the S&P 500 has not yet reclaimed the 50-day moving average.
If it does, it will need to also reclaim the VWAP anchored to the June 15th high.
We have not had a significant pullback since February. So one could argue we are "due" for something greater than a 5%… pic.twitter.com/yYfNFW0Ae4
— Theodore Hicks II, CFP, CKA, CMT (@t2hicks) August 16, 2023

$SPY and $RSP back below their Junes highs. pic.twitter.com/8PmD44Jvdc
— Stacey.A.Lee (@BBaxter2020) August 16, 2023

Get back above ~15300 and the 50d MA and I am willing to participate again...$NDX $QQQ $NQ_F pic.twitter.com/dPywNZbjRN
— Ian McMillan, CMT (@the_chart_life) August 16, 2023

Can price support hold as breadth breaks down?

Can we call it a bull market if more stocks are making new lows than new highs? pic.twitter.com/dJVNsC8F3L
— Willie Delwiche, CMT, CFA (@WillieDelwiche) August 16, 2023

Historically, August has usually been the lousiest in the years when the S&P 500 was up 10%+ YTD through 7/31. pic.twitter.com/RcCxeoZ2a5
— Bespoke (@bespokeinvest) August 16, 2023

The US Dollar $DXY crossing over its 200d MA & 30yr Yields jumping out to highs of the year

These are headwinds for equities pic.twitter.com/DfgBgjI2Sr
— Christian Fromhertz 🇺🇸 (@cfromhertz) August 16, 2023

High vol, low returns… China ETFs live in the nightmare zone. pic.twitter.com/EquMD8LvAD
— Todd Sohn (@Todd_Sohn) August 16, 2023

Building a bottom? We've noted that China acts better than the data. "Easy money" is made when no one is looking & bullish narrative can't be manufactured. We're much more likely to fade than follow political rhetoric in markets, maybe "time bomb" is the ringing bell? $FXI pic.twitter.com/PcFuw1MYru
— RenMac: Renaissance Macro Research (@RenMacLLC) August 15, 2023

4 months left $GS pic.twitter.com/ePxkAyBBzk
— Arun S. Chopra CFA CMT🧐 (@FusionptCapital) August 16, 2023

You’re all caught up now. Thanks for reading!

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