Daily Chart Report π Tuesday, July 23, 2024
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Todayβs Summary
Tuesday, July 23, 2024
Indices: Russell 2000 +1.02% | Dow -0.14% | S&P 500 -0.16% | Nasdaq -0.35%
Sectors: 2 of the 11 sectors closed higher. Materials led, gaining +0.40%. Energy lagged, falling -1.59%.
Commodities: Crude Oil futures fell -1.84% to $76.96 per barrel. Gold futures rose +0.53% to $2,407 per oz.
Currencies: The US Dollar Index rose +0.18% to $104.47.
Crypto: Bitcoin dropped -2.39% to $65,944. Ethereum rose +1.21% to $3,484.
Volatility: The Volatility Index fell -1.28% to 14.71.
Interest Rates: The US 10-year Treasury yield was unchanged at 4.253%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Whether it lasts is an open question, but the combination of lower rates and higher earnings has to be a good thing for most stocks. My guess is that this one will have staying power. As the relative performance of the Russell 2000 shows below, itβs early days still. /END pic.twitter.com/ryqT9ahWjq
β Jurrien Timmer (@TimmerFidelity) July 23, 2024
π Todayβs Chart of the Day was shared by Jurrien Timmer (@TimmerFidelity).
- Small Caps are leading by a wide margin again this week. Over the past three weeks, the Russell 2000 has outpaced the S&P 500 by nearly +11%, marking the best three-week outperformance in more than two decades.
- Despite this historic move, Small Caps are still in a downtrend relative to Large Caps (blue). The sharp rebound over the past three weeks may end up being a dead cat bounce for this ratio.
- If the ratio finally breaks out, Small Cap leadership will become much more pronounced and sustainable. Jurrien points out that the ratio has plenty of potential upside to recover once the trend reverses.
The Takeaway: Even after a historic rebound, Small Caps are still in a downtrend relative to Large Caps. If this ratio breaks out, Small Cap leadership will become more pronounced and sustainable.
Quote of the Day
βThere is a time to go long,
a time to go short,
and a time to go fishing.β
β Jesse Livermore
Top Links
The Stock Marketβs Response β Capp Thesis
Frank Cappelleri breaks down the recent price action and patterns in the S&P 500.
July Mid-Month Conference Call: 5 Key Takeaways β All Star Charts
The team at All Star Charts highlights five key charts to watch in the coming weeks.
A History Lesson β OptimistiCallie
Callie Cox looks at the drawbacks of historical analogs.
The Biggest Winners in the Stock Market β A Wealth of Common Sense
Ben Carlson shares a few stats and insights about the best-performing stocks of all time.