Daily Chart Report π Tuesday, January 23, 2024
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Todayβs Summary
Tuesday, January 23, 2024
Indices: Nasdaq 100 +0.43% | S&P500 +0.29% | Dow -0.25% | Russell 2000 -0.36%
Sectors: 7 of the 11 sectors closed higher. Consumer Staples led, gaining +1.09%. Real Estate lagged, falling -0.54%.
Commodities: Crude Oil futures fell -0.52% to $74.37 per barrel. Gold futures rose +0.18% to $2,026 per oz.
Currencies: The US Dollar Index rose +0.16% to $103.53.
Crypto: Bitcoin rose +0.86% to $39,868. Ethereum dropped -3.02% to $2,241.
Volatility: The Volatility Index fell -4.86% to 12.54.
Interest Rates: The US 10-year Treasury yield rose to 4.132%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
π Todayβs Chart of the Day was shared by Arun Chopra (@FusionptCapital).
- It's hard to deny that a new bull market is underway. However, Charlie Dow might disagree, considering we haven't had a Dow Theory Buy Signal in over two years.
- One tenet of Dow Theory states that the market averages must confirm one another. Dow thought the companies that make the goods (Industrials) should trend with the companies that move the goods (Transports).
- The Dow Industrial Average has been printing all-time highs since mid-December, while Transports haven't made new highs since Nov. '21.
Arun points out that one will likely catch up to the other soon as the 160-day correlation is getting stretched.
The takeaway: The lack of confirmation between the Dow Industrials and the Dow Transports challenges the bull case. This divergence will likely resolve soon; however, Industrials don't always 'catch down.'
Quote of the Day
"All-time highs mean that there is no natural source of supply from profit takers."
β Brian Shannon
Top Links
Six Things to Know About All-Time Highs - Carson Research
Ryan Detrick highlights six facts about record highs.
S&P 500 Percent of Time at New Highs - Bespoke
Bespoke looks at the frequency of all-time highs in the S&P 500.
Peak in New 6-Month Highs - Thrasher Analytics
Andrew Thrasher points out that the percentage of six-month highs in the S&P 500 has been declining while the index has been hitting all-time highs.
Everything That Glitters - Grindstone Intelligence
Austin Harrison examines the outlook for Precious Metals.