Daily Chart Report π Thursday, May 23, 2024
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Todayβs Summary
Thursday, May 23, 2024
Indices: Nasdaq -0.44% | S&P 500 -0.74% | Dow -1.53% | Russell 2000 -1.60%
Sectors: All 11 sectors closed lower. Tech led but still fell -0.81%. Real Estate lagged, dropping -2.12%.
Commodities: Crude Oil futures fell -0.90% to $76.87 per barrel. Gold futures dropped -2.33% to $2,337 per oz.
Currencies: The US Dollar Index rose +0.13% to $105.05.
Crypto: Bitcoin fell -1.70% to $67,945. Ethereum rose +1.22% to $3,782.
Volatility: The Volatility Index rose +3.90% to 12.78.
Interest Rates: The US 10-year Treasury yield rose to 4.477%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
π Todayβs Chart of the Day was shared by Jeff Huge (@Alpha_Insights).
- The S&P 500 ($SPX) engulfed the prior six sessions today, falling -0.75%. This bearish engulfing candle will be confirmed if $SPX continues lower tomorrow. On a brighter note, the index is still above its March highs.
- In addition to this bearish reversal candle, Jeff highlights a bearish divergence between the Volatility Index ($VIX) and the Volatility of the Volatility Index ($VVIX).
- This divergence is bullish for volatility in the near term and, therefore, bearish for the stock market. The $VVIX was also diverging like this before the Covid crash and other meaningful sell-offs.
The takeaway: The S&P 500 formed a bearish engulfing candle today after an ugly reversal. Meanwhile, the $VIX and $VVIX have formed a bearish divergence over the past three weeks. This is certainly a red flag in the near term, but thereβs no reason to panic until $SPX violates the March highs.
Quote of the Day
βThe best investors Iβve seen all have an above-average ability to change their mind.β
β Joel Tillinghast
Top Links
Profit Taking Arrives - Trading Adventures
Andy Moss recaps this week's price action.
The Mad Mob is Front-Running NVIDIA - The Bear Traps Report
Larry McDonald looks at what could happen if $NVDA surpasses $AAPL in market cap.
Nvidia is 'Central to the Growing Tech Story': Strategist - Yahoo Finance
Jay Woods shares his thoughts on $NVDA's earnings report.
Market Strength Fading After Memorial Day - Almanac Trader
Jeff Hirsch examines how stocks have historically performed the week after Memorial Day.
Gold Miners (GDX) Facing 13-Year Resistance!!! - Kimble Charting Solutions
Chris Kimble points out that the Gold Miners ETF ($GDX) has coiled into a pennant pattern over the past decade.