1/30 Bearish. 250 Buying | 610 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bearish.
Mega-cap earnings drove mixed reactions with Microsoft and ServiceNow notably weak, dragging tech and mega-cap growth lower, while Meta and IBM led gains. The broader market showed resilience, recovering from early losses as investors bought dips. Energy and real estate posted modest gains, with crude oil rallying amid geopolitical tensions. Volatility remained subdued, supporting cautious optimism despite sector divergences.
Communication Services (+2.9%) led sector gains, while Information Technology (-1.9%) lagged due to mega-cap earnings pressure. Consumer Discretionary (-0.6%) struggled, weighed down by Tesla and other tech-related names. Materials and Industrials showed mixed strength with selective late-day accumulation in key names.
Upcoming catalysts include December PPI and Core PPI on Friday morning and the January Chicago PMI, which will provide fresh inflation and manufacturing signals. Earnings continue with Apple reporting after Thursday’s close, completing the “Magnificent Seven” tech earnings week.
Key Takeaway:
The market remains cautious with clear selling pressure amid mixed mega-cap earnings, especially in tech. Swing traders should focus on selective long setups in strong sectors like communication services, energy, and materials, while avoiding broad tech exposure until clearer follow-through emerges. Use tight stops below key support levels given the bearish volume skew and mixed price action. Watch for dip-buying opportunities in momentum leaders showing late-day accumulation.
Watchlist
Continuation: RCL (S1: 344, S2: 342, S3: 340, R1: 349, R2: 352, R3: 355)
Anticipation: MSCI (S1: 605, S2: 604, S3: 603, R1: 610, R2: 612, R3: 615)