1/28 Cautiously Bullish. 330 Buying | 200 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Neutral. 20% Weekly is Neutral.
The market shows cautious optimism with the S&P 500 hitting record highs led by strong mega-cap tech earnings anticipation and solid semiconductor gains. Defensive sectors like utilities and energy also posted solid advances amid winter weather concerns and rising oil prices. However, healthcare faces notable weakness due to Medicare payment policy concerns, contributing to DJIA’s underperformance. Volatility remains subdued with VXX stable, supporting a low-fear environment.
Semiconductors and mega-cap tech names (AAPL, MSFT, NVDA) continue to lead momentum, while defense stocks KTOS and NOC show strong follow-through potential. Gold and gold equities (GLD, RGLD) exhibit bullish continuation signals, reflecting safe-haven rotation. Healthcare biotech small/mid-caps present selective momentum setups, contrasting with large-cap pharma softness.
Tomorrow’s key catalyst is the January FOMC decision and Fed Chair Powell’s press conference, expected to be a non-event on rates but closely watched for any shifts in Fed tone.
Key Takeaway:
Focus on high-quality momentum names in tech and semis, especially mega-caps showing relative strength ahead of earnings. Use pullbacks near support levels for entries while maintaining tight stops given mixed sector breadth and healthcare headwinds. Avoid chasing extended moves in weak sectors like healthcare insurance. Monitor gold and defense sectors for tactical swing plays amid low volatility.
Watchlist
Continuation: KTOS (S1: 118, S2: 117, S3: 116.5, R1: 119, R2: 120.5, R3: 121.5)
NOC (S1: 681.5, S2: 678, S3: 675, R1: 683, R2: 685.5, R3: 690)
Anticipation: META (S1: 671.5, S2: 670, S3: 668, R1: 676, R2: 680, R3: 685)
GLD (S1: 472.5, S2: 468.5, S3: 467, R1: 473.5, R2: 475, R3: 478)