Market SA – January 16th, 2025

Market 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.