Market SA – January 16th, 2025Market Recap – January 16th, 2025
Market Overview:
Following a positive CPI update yesterday, markets bounced, but the question remains—was it enough?
Equal-Weighted S&P 500: Moved above the 50 EMA briefly before closing below it, showing an Unbalanced Volume Divergence. This raises caution about a potential reversal or continued range-bound behavior.
Russell 2000: Slightly stronger than the S&P 500, staying above the 50 EMA and neckline of its chop zone.
VIX and Broader Market Indicators: VIX: Currently at 15.94, hovering in the lower range but not yet making a new low.
Growth stocks have improved, with the S&P 500 growth segment above its 20-day average at 59.80.
Industrials: Strong at 74, nearing reversal zones.
Energy stocks: Remain at the higher end of their 20-day average, but typically, this zone precedes declines.
Regional Updates: U.S. Futures: Both the S&P 500 and Nasdaq 100 show green pre-market numbers but face resistance at key levels.
Europe: Markets have shown strength but remain near resistance levels where prior declines have occurred.
Asia: Nothing notable; markets remain flat.
Sector and Commodity Highlights: Taiwanese Semiconductor Manufacturing (TSMC): Reported strong earnings, with a revenue surprise.
Crypto markets: Under mild pressure but holding within ranges.
Commodities: Silver, copper, and gold are trying to push higher but are still within established ranges.
Screener Results: 20% Gainers: 22 symbols, dominated by health technology, though mostly small caps (largest market cap: $13 billion).
8% Weekly Gainers:
227 symbols, with a mixed bag of sectors including energy minerals, finance, health technology, and consumer durables.
Notable names include Mazda , Nintendo , and a few energy stocks.
8% Weekly Losers:
147 symbols, also a mixed bag with no clear sector dominance.
Combination Screens: Bullish Combinations: 83 names.
Bearish Combinations: 20 names.
Plan of Action:
Neutral-to-bearish stance today, with a cautious outlook.
Watching for signs of a reversal or clear breakouts before committing to larger positions.
Leaning short in this chop zone, but the market remains undecided.
