Daily Chart Report π Friday May 10, 2024
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Todayβs Summary
Friday May 10, 2024
Indices: Dow +0.32% | Nasdaq 100 +0.26% | S&P 500 +0.17% | Nasdaq 100 -0.67%
Sectors: 7 of the 11 sectors closed higher. Consumer Staples led, gaining +0.57%. Energy lagged, falling -0.55%.
Commodities: Crude Oil futures fell -1.26% to $78.26 per barrel. Gold futures gained +1.48% to $2,375 per oz.
Currencies: The US Dollar Index rose +0.11% to $105.31.
Crypto: Bitcoin fell -3.62% to $60,793. Ethereum dropped -4.17% to $3,036.
Volatility: The Volatility Index fell -0.95% to a three-month low of 12.56.
Interest Rates: The US 10-year Treasury yield rose to 4.500%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
π Today's Chart of the Day was shared by Brian G (@alphacharts).
- Defensive leadership has threatened the bull case recently. The chart shows the relative strength of three defensive sectors β Health Care ($XLV), Utilities ($XLU), and Consumer Staples ($XLP) relative to the S&P 500 ($SPY).
- Utilities and Staples are the only positive sectors in Q2, gaining +8.6% and +1.7%. Utilities finally snapped a seven-day winning streak today, while Staples are just starting to break out.
- Despite their recent outperformance, Brian points out that defensive sectors are still trending lower relative to the S&P 500. Utilities are bouncing from an all-time low, while Staples are bouncing from a 24-year low (on a relative basis). Both ratios are approaching resistance from the 2021 low.
The takeaway: Defensive leadership has cast a bearish shadow on the broader market. However, at this point, itβs nothing more than a counter-trend rally within a long-term downtrend. Even a dead cat will bounce if it falls from a great enough height.
Quote of the Day
βWe decided that systematic trading was best. Fundamental trading gave me ulcers.β
β Jim Simons (RIP)
Top Links
Stock Market Analysis May 10 2024 - Alphatrends
Brian Shannon reviews this week's price action and some key levels to watch next week.
The Year of the Utes? - Bespoke
Bespoke looks at the recent outperformance from the Utilities sector.
Gold Miners Hit New 52-Week High - All Star Charts
JC Parets shares his thoughts on the current market environment.
Something Incredible is Happening in China - Macro Charts
MacroCharts outlines the bull case for China.
The Important Message From Not-So-Widely Followed Charts - Ciovacco Capital Management
Chris Ciovacco breaks down several noteworthy technical developments.
Top Tweets
307 trading days and counting since SPX's last daily 2% drop. Last streak made it 351 trading days from September 2016 into February 2018. pic.twitter.com/Q9aqTiPETN
β Louis Spector, CMT (@EastCoastCharts) May 10, 2024