Alright folks, let's talk about what happened this week and what's coming next. SPY closed at $679.11 - that's just 2.4% from all-time highs. QQQ at $609.86, DIA at $485.48. And VIX? Sitting at 20.08.

We've seen some significant headlines this week impacting sentiment, including renewed fears regarding tariffs affecting major retailers like Amazon and Walmart. Additionally, the market is bracing for the upcoming earnings report from Netflix, which could set the tone for the tech sector. Let me walk you through everything - the technicals, the catalysts, and what it all means for your trades.

The Story So Far

This week saw a notable dip across major indices, with SPY down by 1.82%, QQQ down by 1.84%, and DIA down by 1.61%. The overall trend remains weak sideways over the past three months, with SPY returning 1.7% and QQQ just 0.7%. The market breadth indicates a healthy uptrend, but the weakening momentum suggests caution.

As we analyze the sectors, we see value and defensive stocks gaining traction, indicating a shift in market sentiment. Traders should be selective with entries and maintain balanced exposure across sectors, especially with the earnings season approaching.

SPY Technical Analysis

📈 SPY EMA Stack (8/21/34 EMA Trend Analysis):

Legend: ■ 8 EMA (fast)   ■ 21 EMA (medium)   ■ 34 EMA (slow)

SPY closed at $679.11, below all EMAs. The 8-day EMA sits at $688.68, 21-day at $687.62, and 34-day at $684.86 - that's a bullish alignment (8 > 21 > 34), indicating that institutions are still buying. However, the RSI at 45.5 is in the neutral-bearish zone, suggesting weak momentum.

The MACD histogram is negative at -2.1102, reinforcing bearish momentum. Additionally, Bollinger Bands show that the price is below the lower band, which typically signals a potential bounce area but requires confirmation from other indicators.

Bottom line: momentum is weakening, and traders should approach with caution. Key levels to watch are the support at $652.53 and resistance at $695.16.

QQQ - Tech Sector Check

QQQ closed at $609.86, lagging behind SPY. The RSI at 45.8 remains neutral, while the MACD indicates bearish momentum with a histogram at -2.1121. This suggests that the tech sector is under pressure, and traders should be vigilant for any directional shifts.

The EMA stack shows a converging configuration, indicating uncertainty in the tech space. As earnings reports roll in, particularly from key players like Netflix, how the sector reacts could provide critical insight into its future direction.

DIA - Dow Check

DIA closed at $485.48, outperforming both SPY and QQQ. The RSI at 51.0 indicates a slightly bullish sentiment, but the MACD shows bearish momentum. This suggests that while value and industrials are currently favored, caution is still warranted.

Market Breadth - NYSE A/D Line

The market breadth remains supportive of an uptrend, indicating healthy participation among advancing issues. This broad support can provide a safety net for traders, but with the recent momentum weakening, it’s essential to remain vigilant.

Sector Rotation & Heatmap

Currently, we are witnessing a rotation in the market. Value and defensive sectors are leading, while growth sectors are lagging. This indicates a risk-off sentiment among investors.

1. Leading (strong momentum): Value/Defensives
2. Improving (gaining momentum): [To be filled with RRG data]
3. Weakening (losing momentum): [To be filled with RRG data]
4. Lagging (underperforming): Technology and Consumer Discretionary

This rotation means traders should focus on sectors showing strength, such as financials, energy, and industrials, while being cautious with those that are underperforming.

VIX - The Fear Gauge

The VIX is currently at 20.08, indicating slightly elevated fear in the market. While this level does not suggest panic, it does imply that option premiums are higher, making it an opportune time for selling strategies like iron condors.

Traders should keep an eye on the VIX as it can influence trading decisions, especially in a volatile environment. A spike above 25 could indicate further caution is warranted.

Economic Calendar

Looking ahead, key economic events to watch include Initial Jobless Claims on January 22. Strong employment data could lead to tighter monetary policy, influencing market sentiment significantly.

Also on January 23, we have the S&P Global Manufacturing and Services PMIs, which may introduce volatility around their release. Traders should consider reducing position sizes ahead of these major releases.

What's Coming Next Week

Alright, so that's where we are technically. Now let's talk about what could move markets next week - because even the best technical setup can get derailed by a catalyst.

Earnings Calendar

"Here's the full breakdown of earnings this week - I've highlighted the ones that could really move the market:"

Day	Symbol	Company	Time	Impact
Monday, Jan 19	FAST	FAST Corp.	After Market	🟡
Tuesday, Jan 20	DHI	DHI Corp.	After Market	🟡
	FITB	FITB Corp.	After Market	🟡
	KEY	KEY Corp.	After Market	🟡
	MMM	MMM Corp.	After Market	🟡
	UAL	UAL Corp.	After Market	🟡
	NFLX	Netflix, Inc.	After Market	🔴
	USB	USB Corp.	After Market	🔴
Wednesday, Jan 21	CFG	CFG Corp.	After Market	🟡
	HAL	HAL Corp.	After Market	🟡
	IBKR	IBKR Corp.	After Market	🟡
	KMI	KMI Corp.	After Market	🟡
	PLD	PLD Corp.	After Market	🟡
	SCHW	SCHW Corp.	After Market	🟡
	STX	STX Corp.	After Market	🟡
	TDY	TDY Corp.	After Market	🟡
	TEL	TEL Corp.	After Market	🟡
	TFC	TFC Corp.	After Market	🟡
	TRV	TRV Corp.	After Market	🟡
	JNJ	JNJ Corp.	After Market	🔴
Thursday, Jan 22	ABT	ABT Corp.	After Market	🟡
	COF	COF Corp.	After Market	🟡
	CSX	CSX Corp.	After Market	🟡
	GEV	GEV Corp.	After Market	🟡
	HBAN	HBAN Corp.	After Market	🟡

In the upcoming week, all eyes will be on Netflix's earnings report. Given its significant influence in the tech sector, the results could drive sentiment across the broader market. Traders should prepare for potential volatility in tech stocks following this announcement.

My Game Plan

My approach is about capital preservation first. The goal is simple - preserve capital when conditions are tough so you have money to make when conditions improve. This is how wealth is built over time.

Given the current market conditions, this is NOT the time to be aggressive. My focus shifts to managing existing positions - tightening stops and taking profits where appropriate. I will also be preserving capital with smaller position sizes or sitting out entirely, waiting for clearer signals.

Better to miss a move than force a trade that goes against you. Remember - you don't need to trade every day. The market will be here tomorrow. Protecting your capital in tough times is what allows you to capitalize when good opportunities come.

What Maya Can Do For You

Maya's edge isn't just finding setups - it's the sophisticated exit rules that cut losers early, often at just 2%, 4%, or 8% loss—way before traditional stop losses kick in. This approach means that when a losing streak hits, the losses are small and manageable.

Imagine getting an alert on your phone the exact moment you need to act—while you are in a meeting, picking up the kids, or just living your life. That is what Maya does. She watches every position, every day, and alerts you instantly when an exit rule triggers.

If you're tired of holding losing trades too long or making emotional decisions, Maya's systematic monitoring and disciplined exit rules might be what you need to take your trading to the next level.