Daily Chart Report π Wednesday, May 29, 2024
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Todayβs Summary
Wednesday, May 29, 2024
Indices: Nasdaq -0.70% | S&P 500 -0.74% | Dow -1.06% | Russell 2000 -1.48%
Sectors: All 11 sectors closed lower. Communications led, but still fell -0.53%. Energy lagged, falling -1.77%.
Commodities: Crude Oil futures fell -0.75% to $79.23 per barrel. Gold futures dropped -0.65% to $2,341 per oz.
Currencies: The US Dollar Index rose +0.48% to $105.12.
Crypto: Bitcoin fell -1.12% to $67,564. Ethereum dropped -2.04% to $3,762.
Volatility: The Volatility Index gained +10.53% to 14.27.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
You can see the Bearish Divergence on % Stocks > 200 SMA was happening then and is also happening now, as well. pic.twitter.com/qh03080JmN
β Jay R. Ligon (@TheeDisruptor) May 29, 2024
π Todayβs Chart of the Day was shared by Jay Ligon (@TheeDisruptor).
- The S&P 500 is only -1.0% off all-time highs, and yet itβs skating on thin ice as it tests the March highs. Closing below would qualify as a Failed Breakout.
- The recent strength from $NVDA and other Mega-Cap stocks has masked some of the weakness beneath the surface of the S&P 500.
- While the index reached all-time highs in May, fewer members were above their 200-day moving averages. The percentage of stocks above their 20-day and 50-day moving averages has also been diverging.
The takeaway: The S&P 500 is still +10% above its 200-day moving average, but the index is testing a critical level, while breadth has been deteriorating and diverging for several weeks.
Quote of the Day
"A group of people who think differently is a market.
A group of people who think alike is a mob."
- Naval
Top Links
June Almanac: Third Best S&P 500 Month in Election Years - Almanac Trader
Jeff Hirsch examines how stocks have historically performed in June.
A Tale of Two Indices - Bespoke
Bespoke looks at the dispersion between the S&P 500 and the Dow.
Understanding Dow Theory Signals for the Current Market - See it Market
David Keller discusses Dow Theory and and what it suggests about the current market right now.
Bonds are Still Crashing - All Star Charts
JC Parets highlights some noteworthy technical developments.