Daily Chart Report 📈 Tuesday, October 17, 2023

October 17, 2023

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Today’s Summary
Tuesday, October 17, 2023

Indices: Russell 2000 +1.09% | Dow +0.04% | S&P 500 -0.01% | Nasdaq -0.33%

Sectors: 7 of the 11 sectors closed higher. Energy led, gaining +1.04%. Real Estate lagged, falling -0.52%.

Commodities: Crude Oil futures were unchanged at $86.66 per barrel. Gold futures inched higher by just +0.07% to $1,936 per oz.

Currencies: The US Dollar Index was flat at $106.19.

Crypto: Bitcoin fell -0.39% to $28,408. Ethereum dropped -2.17% to $1,566.

Volatility: The Volatility Index dropped +4.01% to 17.89.

Interest Rates: The US 10-year Treasury yield rose to a new multi-year high of 4.836%.

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

Chart of the Day

$IWM bullish divergence pic.twitter.com/8E1Vbt9LmZ
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) October 17, 2023

Today’s Chart of the Day was shared by Mike Zaccardi (@MikeZaccardi). The Russell 2000 ($IWM) gained +1.1% today, while the other indices were flat or lower. It closed at a five-month low last week, but it’s rebounding off support at $170 again. Mike points out that $IWM has formed a bullish momentum divergence, as price made a lower low on Friday, while RSI made a higher low. $IWM also registered a Death Cross on Friday, with its 50-day moving average (blue) slipping beneath its 200-day (red). Despite the spooky name, Death Crosses have historically been bullish. Seasonality might be the cherry on top here, as Small-Caps historically begin to outperform Large-Caps in late October. If Small-Caps finally join the party, it will further confirm the new bull market.

Quote of the Day

“We take credit for the good stuff and blame the bad stuff on luck…the result is that we don’t learn from experience well.”

– Annie Duke

Trendlines > Headlines

-XA7gELM

The latest episode of Trendlines over Headlines is out!

This week, Jeff Hirsch of The Stock Traders Almanac joins us to discuss Seasonality, the 4-year Presidential Cycle, Crypto, and more!

Top Tweets

$SPY still unable to fill its Sept 21 gap. Needs to rally to 438.43 to fill it. pic.twitter.com/cF6YtamkV8
— Walter Deemer (@WalterDeemer) October 17, 2023

If we knock on the door of this gap enough times, we need to bust through right? $SPY pic.twitter.com/GIPyi7idIc
— Michael Nauss, CMT, CAIA (@MichaelNaussCMT) October 17, 2023

Short-term range developing on the 1hr S&P 500 chart. $SPX $SPY pic.twitter.com/A2lQiLPMaf
— Andrew Thrasher, CMT (@AndrewThrasher) October 17, 2023

$rty #russell2000 Nice "cadence" to upswings within range, can it do it again? pic.twitter.com/dktdehb6Qs
— Nautilus Research (@NautilusCap) October 17, 2023

Insurance companies looking for a breakout $IAK pic.twitter.com/KB5f8v8hez
— Alfonso De Pablos, CMT (@AlfCharts) October 17, 2023

Pretty ideal behavior from Insurance stocks, which have been getting very little attention lately...$KIE $SPX pic.twitter.com/98sNSRAVLe
— Ian McMillan, CMT (@the_chart_life) October 17, 2023

Transports $IYT finding support above its uptrend line. Would like to see a move back above the 200 day moving average. pic.twitter.com/oKZUjS0Jda
— Ross J Brown (@RJB_Financial) October 17, 2023

Worst day for $NVDA since Aug 9th, with lowest intraday low of the year (-7.8%). However, closed +3.4% off the low which is the 2nd biggest bounce this year (negative days only) on 184% of avg volume. pic.twitter.com/PzN5Gyh4zC
— Optuma (@Optuma) October 17, 2023

A possible massive H&S pattern I am still watching $NVDA

Very clear support level around $408 pic.twitter.com/dhdjXUkDnh

— Dash, CMT, CFP (@Dash_charts) October 17, 2023

U.S. dollar index $DXY
the daily #MACD rolled and that could be an initial attempt at a lower high, but it might not. we just have to keep observing... pic.twitter.com/HQIj1dmaqx
— David Cox, CMT, CFA (@DavidCoxRJ) October 17, 2023

Yo, Charts - pic.twitter.com/uSUo3BVDXQ
— da Chart Life (@daChartLife) October 17, 2023

If you are surprised that yields continue to rise, maybe you are focusing too much on the chatter about them peaking and focusing too little on the underlying trend which shows the most persistent rise in yields in the past half century. pic.twitter.com/6dETyjKZAH
— Willie Delwiche, CMT, CFA (@WillieDelwiche) October 17, 2023

Remember *checks notes* 2 weeks ago when we were all terrified about the Treasury "meltdown" that was driving the 10yr yield above 4.8%?

Yeah, we're on track to close above that level today, the S&P 500 $SPX is trading higher and the #VIX is flat at 18.#MuchAdoAboutNothing? pic.twitter.com/QRnDWBqSZl
— Matt Weller CFA, CMT (@MWellerFX) October 17, 2023

4. The short-term holder realized price, essentially the AVWAP for on-chain data, is also providing an important signal.

Price is breaking above the STHRP, which is a key characteristic of an uptrend & it has a history of acting as dynamic support.

This improves bullish odds. pic.twitter.com/9SwDHT1xJv

— Caleb Franzen (@CalebFranzen) October 17, 2023

I always think this type of chart looks like the end of computer solitaire when the cards bounce off the screen$HG_F #Copper pic.twitter.com/UGuHqbD5SF
— David Rath, CMT, CFA (@DJwrath) October 16, 2023

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

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