Quick Market Thoughts 1-19-22

$ES_F - S&P futures 

- Daily chart: Fast price action along with a rapid change in the technical picture as price was rejected at the top of the Jan Value Area and now is back below all short term MAs which is a sign of weakness.

- 1hr chart: Price not only fell to the the bottom of this week's Value Area completing the 80% rule but also is slicing through the bottom of value support, next stop 3860 1hr VPOC  / note if price does rebound, watch 3933.5 what was support is now resistance

One of the developments that I thought was interesting yesterday was the Defensive areas / sectors looked the weakest XLV XLP XLU also can look at SPLV and further SPHB (High Beta) vs SPLV (Low Volatility). Higher Beta is actually doing well on a relative basis.

So, does this mean there is a rotation into other areas or just risk off everything (with High Beta falling less fast than Low Volatility)?  Yesterday, and this morning so far looks like liquidation ... Semis are outperforming (chart via Bloomberg below) which is interesting on a relative basis, but I want to see the market stabilize first and then will watch for more developments. 

Earnings will also continue to be in focus (along w/ this debt ceiling issue), and one that reported last night AA Alcoa is not a good report and this was an area that was showing strength over the last couple weeks SLX XME so will watch how this affects group... more to follow in the TTG Live session (starts everyday 9:10est)

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