Technical Indicators Point to Potential Market Weakness in January
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SPX has repeatedly seen rallies thwarted at the 4800 level this year. Market internals have begun to worsen despite only a small price pullback so far.
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Breadth indicators remain negative. VIX and volatility derivatives remain bullish for stocks currently but that may be changing.
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Seasonality suggests a potentially negative period in mid-January, especially for tech stocks. hence the recommendation to short QQQ.
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New put-call ratio sell signals in Treasurys and TLT ETF suggest buying TLT puts for a trade.
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Overall core bullish position is maintained as long as SPX remains above 4600. Other trades recommended based on various indicators and seasonal patterns.