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Daily Chart Report πŸ“ˆ Thursday, July 18, 2024

July 18, 2024

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Today’s Summary

Thursday, July 18, 2024

Indices: Nasdaq 100 -0.48% | S&P 500 -0.78% | Dow -1.29%| Russell 2000 –1.85%

Sectors: 2 of the 11 sectors closed higher. Energy led, rising +0.18%. Health Care lagged, dropping -2.27%.

Commodities: Crude Oil futures fell -1.87% to $81.30 per barrel. Gold futures fell -0.14% to $2,456 per oz.

Currencies: The US Dollar Index rose +0.42% to $104.18.

Crypto: Bitcoin inched lower by -0.20%to $63,964. Ethereum gained +1.12% to $3,426.

Volatility: The Volatility Index jumped +10.02% to 15.92.

Interest Rates: The US 10-year Treasury yield rose to 4.204%

Here are the best charts, articles, and ideas shared on the web today!

Chart of the Day

πŸ† Today’s Chart of the Day was shared by Eric Conrads (@conradseric).

  • Small Caps finally cooled off today after trouncing Large Caps over the past week. The Russell 2000 ($IWM) had outperformed the Russell 1000 ($IWB) by nearly +10% over the prior five days, marking the sharpest five-day rally since the inception of these ETFs.
  • Despite this historic outperformance from Small Caps, the long-term trend still favors Large Caps. This ratio is hovering near multi-decade lows in a well-defined downtrend.
  • Eric points out that it’s testing its 200-day moving average from below. It has failed at this downward-sloping moving average several times since 2021.

The Takeaway: Despite a historic counter-trend move over the past week, the long-term trend still favors Large Caps over Small Caps. Large will be in charge until this ratio starts printing higher highs and higher lows (aka trending higher).

Quote of the Day

β€œAn ounce of action is worth a ton of theory.”

– Ralph Waldo Emerson

Top Links

What Happens After Extension – Trading Adventures
Andy Moss recaps the recent price action in the major averages.

This Year’s Summer Rally Has Gotten Healthier, Says Bank of America’s Stephen Suttmeier – CNBC
Stephen Suttmeier shares his thoughts on the recent rotation in the market.

Will This Sector Rotation Be The Start Of Something Bigger? – StockCharts.com
Julius de Kempenaer examines the ongoing sector rotation within the S&P 500.

Mining Stocks > Shiny Rocks – All Star Charts
Ian Culley points out that Gold & Silver Miners are posied to outperform the underlying commodity.

ETFs & Markets with Todd Sohn: Market Trends, Equity Flows and Small-Caps – Strategas Asset Management
Todd Sohn makes sense of recent fund flows, the rebound in Small Caps, and the expansion in breadth.

Top Tweets

You’re all caught up now. Thanks for reading!