Weekly Earnings Update - 1/31/22

The big three (SPY, DOW and QQQ) are all well below their 50- and 200-day moving averages with the S&P 500 closest to touching the 200-day. The mighty 200-day can be a significant line in the sand so to speak, so if the indexes can get back above that level -- where they have traded for a long time until recently -- it would be a bullish sign. $SPX is just now catching up. So far, it has found support in the 4200–4300 area, which is the September lows. The SPY, DOW and QQQ managed a weekly gain thanks in part to a late day rally on Friday. Unfortunately, the IWM was still down but less than 1%. All this after the Fed came out with some comments that were more hawkish than expected on Wed. The market is so oversold that a rally could occur at any time. An oversold rally usually can retrace all the way up to the declining 20-day Moving Average and a little beyond, before it runs out of steam. In this case, the 20-day MA of $SPX is still quite a ways above current prices – at 4600, but it is declining rapidly. Even so, that would be a substantial rally from current levels Looking for a follow through move higher early next week but markets will likely continue to be volatile. What's Happening - • Possible continuation bounce after January selling but there will be more volatility. • Watch the 2 year and 10 year treasury yield as the gap closes between the two. • VIX - pulled back on Friday on market strength. • US dollar may be ready to consolidate after big pop up. • Earning season continues. Lots of big names continue. Sectors in Play - • Energy looks a little extended and maybe due for pullback. • Financials maybe found a bottom here - will do OK in a rising interest rate environment. Earnings - Quarterly earnings continue to roll with Amazon, Alphabet and Meta just a few of the well-known stocks expected to announce this week Earnings on deck this week: Tues • XOM, UPS bmo - • AMD, PYPL, SBUX and GOOGL amc Wed • ABBV, BABA bmo - • META, SPOT and QCOM amc Thu • AMZN, SNAP, PINS amc Watch List : AAPL - Nice response to earnings - maybe range bound now trading $160 to $180. AMD - very oversold - support at $100. NVDA - Oversold - possible bounce GLD (Gold) - very oversold, might be time to step in here for a bounce. USO and Oil sector (XLF) - some oversold topping action on daily candles. TSLA - caught a bid Friday after big earnings sell off. Very volatile stock with $800 support now.