Daily Chart Report 📈 Wednesday, February 7, 2024
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Today’s Summary
Wednesday, February 7, 2024
Indices: Nasdaq +1.04% | S&P 500 +0.82% | Dow +0.40% | Russell 2000 -0.17%
Sectors: 9 of the 11 sectors closed higher. Technology led gaining +1.32%. Consumer Staples lagged, but only fell -0.09%.
Commodities: Crude Oil futures rose +0.75% to $73.86 per barrel. Gold futures were flat at $2,052 per oz.
Currencies: The US Dollar Index inched lower by -0.08% to $104.05.
Crypto: Bitcoin rose +2.91% to $44,346. Ethereum gained +2.18% to $2,424.
Volatility: The Volatility Index fell -1.76% to 12.82.
Interest Rates: The US 10-year Treasury yield rose to 4.123%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
🏆 Today’s Chart of the Day was shared by Brian Shannon (@alphatrends).
- Momentum and breadth indicators have recently begun to diverge from price, suggesting the rally is getting long in the tooth. In addition, the bulls no longer have a seasonal tailwind at their backs.
- While breadth, momentum, and seasonality warrant near-term caution, Brian reminds us that the trend is the final arbiter.
- The S&P 500 ($SPY), Nasdaq 100 ($QQQ), and Semiconductor Index ($SMH) are “innocent until proven guilty” as they’re above their 5-day moving averages. On the other hand, the Russell 2000 ($IWM) remains below its 5-day moving average, making it “guilty until proven innocent.”
The takeaway: Divergences are beginning to stack up as the rally matures. It’s important to be aware of these bearish developments, but acting on them is pointless until the short-term trend turns lower, which hasn’t happened yet.
Quote of the Day
“Divergences are like laxatives. You never know if one is enough or two is too many.”
– Justin Mamis
Top Links
Almost Time for a Tech Breather – Grindstone Intelligence
Austin Harrison looks at the relentless outperformance from the Technology sector ($XLK).
Trend in Large Cap Equities Becomes Stretched – Thrasher Analytics
Andrew Thrasher points out that the S&P 500 is getting stretched from its 200-day moving average.
How to Trade Psychological Milestones – Schaeffer’s Investment Research
With the S&P 500 approaching 5,000 and the Dow approaching 40,000, Rocky White examines how the major averages have performed after reaching round-number milestones.
Stock Market & Bitcoin Analysis February 7, 2024 Alphatrends
Brian Shannon breaks down recent price action and identifies some key levels to watch in the near term.
Will the (year of the) Dragon Slay the Bear in China – Almanac Trader
Jeff Hirsch looks at how Chinese stocks have performed before and after Chinese New Year.
Top Tweets
You’re all caught up now. Thanks for reading!