1/6 Cautiously Bullish. 840 Buying | 200 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Bullish. 20% Weekly is Neutral.
Stocks gained broadly Monday, with the DJIA hitting record highs led by energy (+2.7%), financials (+2.2%), and consumer discretionary (+1.9%), while tech lagged slightly. The market showed rotation into cyclical sectors amid geopolitical developments in Venezuela and solid volume returning post-holiday. Volatility (VXX) remains elevated, signaling caution despite broad strength.
Energy and healthcare/life sciences sectors displayed strong momentum and accumulation, while financials and large-cap industrials showed late-day distribution. Semiconductor and tech names softened late, suggesting mixed near-term momentum.
Tuesday’s key catalyst includes the final December U.S. Services PMI at 9:45 a.m. ET, with no major earnings pre-market. Watch for continued geopolitical news on Venezuela and Treasury yield movements.
Key Takeaway:
Focus on cyclical sectors and healthcare for momentum plays while respecting rising volatility and late-day selling in financials and tech. Use tight stops near recent intraday lows and favor pullbacks to support in strong names. Avoid weak late-day distributions and illiquid microcaps. Confirm breakouts with volume in the first 30–60 minutes of trading.
Watchlist
Continuation: TMO (S1: 608.5, S2: 607.5, S3: 605.5, R1: 612.0, R2: 615.0, R3: 618.0)
VSEC (S1: 194.0, S2: 193.0, S3: 192.0, R1: 198.0, R2: 199.0, R3: 200.0)
Anticipation: BW (S1: 6.5, S2: 6.4, S3: 6.35, R1: 6.6, R2: 6.75, R3: 7.0)
LPTH (S1: 11.5, S2: 11.4, S3: 11.35, R1: 11.8, R2: 12.0, R3: 12.2)