SPY|QQQ Thursday 1PM 1/08/2026

Market Sentiment Analysis:

1. Overall Market Sentiment:

• SPY (S&P 500 ETF):
  On the 30-minute intraday chart for SPY over the last 30 days, there has been a mixed movement with the recent 13 bars indicating modest uptrends accompanied by relatively low volume, suggesting potential indecision but a tilting towards positive sentiment. The moving averages may show slight upward slopes, indicating a possible bull momentum gaining strength in recent sessions.

• QQQ (Nasdaq-100 ETF):
  QQQ’s recent 13 bar pattern reveals a more noticeable positive price action, especially given its recent bars closing higher with moderate volume. This points towards a building positive sentiment, supported by tech sector strength which QQQ is heavily influenced by. The moving average trend likely confirms a positive momentum direction.

• VXX (Volatility Index):
  VXX shows slight spikes throughout the 30-day period but recently remains relatively stable. The absence of significant spikes indicates a reduction in investor concerns about volatility in the immediate term, suggesting further potential steadiness or optimism for SPY and QQQ.

1. Sector Analysis:

   Examining sector ETFs, XLY (consumer discretionary) and XLK (technology) have seen stronger performances, indicative of risk-on sentiment with investors favoring growth. XLE (energy) and XLF (financials) also display a positive drive, suggesting sector rotation into these more cyclical areas. Conversely, XLV (healthcare) and XLP (consumer staples) are more subdued, hinting at some cautious capital still in defensive sectors but a broader move towards more aggressive positions.

2. Key Levels to Watch:

• SPY:
  Resistance: ~690
  Support: ~688

  A breakout above 690 could usher a more extended bull move, while a breakdown below 688 would warrant caution.

• QQQ:
  Resistance: ~620.5
  Support: ~619

  Sustained movement above 620.5 may support continued upward momentum; a fall below 619 may imply a pullback.

1. Scenarios:

• Bullish Scenario:
  For SPY and QQQ, potential bullish scenarios could include robust earnings reports exceeding expectations, continued positive economic data such as employment gains, and a shift in geopolitical dynamics favoring market stability. Technical breakouts above recent resistance in both ETFs will reinforce this bullish view.

• Bearish Scenario:
  Possible bearish scenarios consist of downbeat economic indicators or earnings, renewed geopolitical frictions, and technical breakdowns below key short-term support levels, triggering increased selling pressures driven by technical traders.

1. Overall Commentary:

   The current market shows cautiously optimistic sentiment. Sector rotation into more cyclic areas and performance in growth-oriented tech and discretionary sectors underscore this positive outlook. However, watchful monitoring of economic news and geopolitical developments remains crucial for validation of the short-term rally. Traders should consider the current market environment’s inclination towards growth, balanced with defensive risks maintained in healthcare and staples.

2. Include Charts:

• SPY:
• QQQ:
• VXX:
• XLC:
• XLY:
• XLP:
• XLE:
• XLF:
• XLV:
• XLI:
• XLK:
• XLB:
• XLRE:
• XLU: