Recap of the US stock market plunge on January 20

Escalating tariff threats are the main reason, with Trump proposing a 10% tariff on Europe starting in February, potentially rising to 25% in June. Additionally, the Supreme Court did not provide a clear ruling on the legality of the tariffs, increasing market uncertainty. SPY and QQQ have fallen below key support levels, shifting the bullish mode from offense to defense. The market rhythm is not a panic-driven stampede but rather widespread selling pressure, with each rebound showing weak momentum.

SPY has broken below the key support level of 679 and may further decline to around 675 or even 671.

QQQ closed below the 610 lifeline, with the next support zone at 600-603.

The current situation is a "structural de-risking," with funds withdrawing from high-valuation sectors to seek safe havens, rather than systemic chaos. Tariffs may trigger imported inflation, making it difficult for interest rate expectations to turn dovish, while trade friction also suppresses corporate investment confidence. A short-term low is expected around Wednesday this week, and the market may test lower again to clear panic and stop-loss orders.

This is not an environment for chasing rallies; action should be taken only after key levels are confirmed. Before reclaiming key levels, any rebound should be seen as a "pullback" rather than a "reversal."

$SPDR S&P 500(SPY.US)