1/27 US stock market review, SPX hits a new high, gold surges to 5200!!
The S&P 500 index is approaching 7,000 points, hitting a new high, while the Nasdaq continues to rise, but the Dow Jones is underperforming due to drag from the healthcare sector. The day's trading volume was about 15% lower than the weekly average, indicating that large funds have not yet entered the market. The current rally is mainly driven by retail investors and algorithmic trading, creating a contradictory market state. Some are buying tech stocks betting on improved Fed expectations, while others are buying safe-haven assets like gold, anticipating major events ahead.
Earnings reports have driven a rebound in risk appetite, with the market focusing on cash flow and economic resilience. Reports from UPS, FedEx, General Motors, and Boeing support the "soft landing" narrative.
Affected by the Trump administration's Medicare payment proposal, heavyweights like UnitedHealth and CVS saw significant declines. Policy variables in 2026 will frequently impact sector valuations.
The U.S. consumer confidence index fell to its lowest level since 2014. Although the market is currently filtering this negative signal through corporate earnings and liquidity expectations, the downward trend warrants attention for confirmation in subsequent data.
Tech stocks generally strengthened (e.g., Corning surged due to a contract with Meta). This week, the market demands not only impressive numbers from tech giants but also clear AI commercialization paths.
Key events:
Wednesday: Fed rate decision (14:00 ET) and press conference
Wednesday after-hours: Microsoft and Tesla earnings
Thursday after-hours: Apple earnings
-SPY resistance at 700, support at 690
-QQQ resistance at 632, key support at 622 or 618. If earnings disappoint, QQQ may retreat faster than SPY.
-UNH plunged today, currently in a "second-wave correction." While there's no clear bottom signal, considering cyclical symmetry and positioning, building a position near 276 is advisable—don't chase the absolute low.
-COIN & FIG, affected by crypto-related factors, are very weak and in a bearish pattern. Avoid rushing to bottom-fish.
-AVGO is in high-range volatility, which isn't over yet. Prices remain elevated—stay patient and cautious, waiting for a better entry point.
-UPST is a typical weak growth stock, currently between the mid and lower Bollinger bands. Watch and wait; only consider adding near the lower band during sharp declines.
The current baseline is a high-volatility, bullish market. This week's trend won't be smooth sailing but will require navigating news-driven tests. Stay alert and monitor Fed signals and post-earnings pullbacks from giants.
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