1/27 Cautiously Bearish. 200 Buying | 350 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Bullish – Caution. 20% Weekly is Bullish – Caution.
Mega-cap leadership supported modest market gains despite mixed breadth, with Communication Services and Information Technology sectors leading. Meta (+2.1%) and Alphabet (+1.6%) drove strength in communications, while Apple (+3.0%) and Microsoft (+0.9%) bolstered tech, offsetting weakness in semiconductors and Tesla’s drop below its 50-day SMA. Rotation favored defensives like healthcare and financials, while metals and materials showed distribution. Volatility (VXX) spiked late, signaling caution.
Key sectors to watch include Communication Services, Technology, Healthcare, and Financials amid upcoming mega-cap earnings (Apple, Microsoft, Meta, Tesla). Durable goods orders and consumer confidence data are due Tuesday, alongside a 5-year Treasury auction.
Key Takeaway:
Focus on mega-cap momentum names showing late-day accumulation (MOD, AMGN, JLL, RCL). Avoid fading crypto proxies and metals/miners facing distribution. Use support/resistance levels to enter continuation trades on confirmed volume and price holds. Manage risk tightly given elevated volatility and mixed sector rotation.
Watchlist
Continuation: JLL (S1: 355, S2: 355, S3: 354, R1: 358, R2: 360, R3: 361)
Anticipation: UNH (S1: 350.5, S2: 349.5, S3: 348.9, R1: 352, R2: 353, R3: 355)