By Michael Nauss, CMT, CAIA, CDMS
1/ Tech Sell-off
2/ Sector Overview
3/ Oil Close to a Breakout
4/ Airlines Flying
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1/
Tech Sell-off
Courtesy of StatsEdge
The entire market was down today, led by the tech sectors. The QQQ closed down 1.7%, threatening recent support. In markets like this, it becomes our job to ask a simple question to look for strength.
What didn’t “they” sell?
2/
Sector Overview
Courtesy of StatsEdge
The above chart is a heat map of sectors that I watch to try to see the market’s underlying health. Although the market was down significantly today, there were a fair amount of green sectors to keep an eye on here.
It’s good to keep a list like this to notice themes like energy and metals being strong. From there, we can dive into the charts of a few of these sectors to see if anything stands out for a potential trade.
3/
Oil Close to a Breakout
Courtesy of StatsEdge
Oil has been in a range for two years now, and that range has been contracting.
We are nearing the higher end of this wedge, with some good relative strength shown today.
4/
Airlines Flying
Courtesy of StatsEdge
The airline ETF was one of the leaders in 2024 and held well into today’s action.
This puts us at the high end of a range we have been in from the beginning of November. A break of this could lead to some continued strength.
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Originally posted 8th January 2025
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