Daily Chart Report 📈 Thursday, December 21, 2023

December 21, 2023

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Today’s Summary
Thursday, December 21, 2023

Indices: Russell 2000 +1.73% | Nasdaq 100 +1.23% | S&P 500 +1.03% | Dow +0.87%

Sectors: All 11 sectors closed higher. Consumer Discretionary led, rising +1.52%. Utilities lagged but still inched higher by +0.18%.

Commodities: Crude Oil futures fell -0.44% to $73.89 per barrel. Gold futures inched higher by +0.18% to $2,051 per oz.

Currencies: The US Dollar Index dropped -0.59% to a four-month low of $101.79.

Crypto: Bitcoin gained +0.48% to $43,873. Ethereum rose +1.71% to $2,240.

Volatility: The Volatility Index was unchanged at 13.66.

Interest Rates: The US 10-year Treasury yield rose to 3.892%.

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

Chart of the Day

Today’s Chart of the Day was shared by John Roque of 22V Research (@daChartLife). Small-caps have led the current rally by a notable margin. The Russell 2000 is up more than 20% since the end of October, putting it on track for its best two-month gain since December 2020. It's still facing resistance at 2000, representing the upper bounds of a two-year range. However, John points out that the Russell 2000 could be in the early innings of a triple-digit rally, considering the index is emerging from its second-worst bear market. He notes, "Over the last 25 years, turns off bear market lows have produced outsized gains for this index. There have been six bull markets for the Russell 2000 since the late 1990s, with five of six producing trough-to-peak gains of at least 102%, while the non-triple digit advance gained 83%.

Quote of the Day

“Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.”

– John Templeton

Top Tweets

Solid breadth today.
90%+ upside day for SPY and QQQ. pic.twitter.com/DsBtvoN1ye
— Larry Tentarelli, Blue Chip Daily (@bluechipdaily) December 21, 2023

Yesterday, the $DIA Dow Jones Industrial Average ETF suffered its biggest single day loss since March 22 - a counter trend move that would make the bulls uneasy.

Yet, low liquidity amplified volatility can lack run. Today, biggest gap higher on the open since Nov 30th: pic.twitter.com/3GGEk60NtG
— John Kicklighter (@JohnKicklighter) December 21, 2023

Only the 3rd time this year the $SPX has returned < -1% & +1% in consecutive days, ending a 224 day streak (longest since 2017). pic.twitter.com/rv36KfT9IN
— Optuma (@Optuma) December 21, 2023

Active managers had less than 25% exposure to equities in late October when the S&P 500 was at 4,100.

Today their equity exposure has jumped to 97% with the S&P 500 above 4,700. pic.twitter.com/UMJLtb6yt8
— Charlie Bilello (@charliebilello) December 21, 2023

Momentum tends to beget more momentum. pic.twitter.com/Lmrol9s73S
— Todd Sohn (@Todd_Sohn) December 21, 2023

$AAPL

Another divergence into ~$198... pic.twitter.com/GjducL31Kp
— Ian McMillan, CMT (@the_chart_life) December 21, 2023

There are now > 50 names in the $SPX $SPY returning more than 50% ytd

The Magnificent 50! pic.twitter.com/sAZ6Irk8v1
— Christian Fromhertz 🇺🇸 (@cfromhertz) December 21, 2023

Gold continues to battle withe supply zone of the last few years on the weekly timeframe (left)

The daily inset shows constructive action with a higher low near 1985 that could be used as the basis of a stop

Energy for upside move seems to be building $GC_F $GLD

good time… pic.twitter.com/ra8cQ4vFTO
— Brian Shannon, CMT (@alphatrends) December 21, 2023

Rates peaked and rolled in late October, giving a boost to risk assets$SPX up ~15% and $BTC up ~65% from Oct lows

Meanwhile, US 10yr has fallen about 115bps, the biggest decline in rates during this hike cycle$TNX hasn't been so oversold since Mar 2020

What if rates bounce? pic.twitter.com/Loe78sZsWQ
— Steven Strazza (@sstrazza) December 21, 2023

The 3.25 level marks a logical area for a pullback in the 10-year yield. $TNX pic.twitter.com/6GYGv7gbVN
— Ian Culley, CMT (@IanCulley) December 21, 2023

The RSI watching everyone misuse it. pic.twitter.com/9LWB3aNsZ5
— Arun S. Chopra CFA CMT🧐 (@FusionptCapital) December 21, 2023

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

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Daily Chart Report 📈 Thursday, December 21, 2023

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