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Morning Market Rap 01/06/22 by CTG

SPY / QQQ / Vix

SPY 5 days, hourly candles S&P futures saw further selling thru yesterdays RTH lows, and pushed into deep hourly oversold conditions before seeing some bounce to cool off those oversold conditions 466.02 the corresponding futures low

469.46 the corresponding futures high

SPY 4hr also pushed into oversold conditions before seeing some bounce to cool off that condition - if this is all the bounce we see 4hr bear flag is in play

SPY 3 months, daily candles Loss of the daily uptrend and bull momentum after the daily bull flag, and recent "higher low" area, decisively failed on volume and broke lower thru the 12ema (white line) 468.28 the low from yesterday and first support, trading right around there currently

467.81 small open gap

465.86 the 50 day MA

462.58 next support

455.40 small open gap

448.92-451.14 after that 477.98 the high from yesterday and first resistance on this timeframe

QQQ 5 days, hourly candles Nasdaq futures also broke the lows from yesterday before seeing some oversold bounce off deep hourly OS conditions; Heading back for a test of those futures lows currently. 380.80 the corresponding futures low

385.30 the corresponding futures high

QQQ 4hr time frame is hanging out in oversold territory, so reasonable to be scouting a short term bounce here as we come into the test of recent December lows

QQQ 3 months, daily candles Failed to push back above the 12ema (white line) yesterday and decisively broke thru the 50 day MA on volume (blue line) as it heads for the test of recent Dec. lows 384.03 the low from yesterday, trading under there currently so gap down open setting up

377.47 the 12/20 low next support

*losing 377.47 with follow thru would confirm the first weekly downtrend since the post-Covid crash

373.37 the 150 day MA with

372.39 candle support low from 10/22 just under there

362.66 the 200 day MA

350.32 would be the next major weekly support from early October 393.45 the 50 day MA back overhead

395.89 the high from yesterday next resistance on this timeframe

TLT 15 days, 4hr candles The slide here continued yesterday as the first oversold 4hr RSI bounce attempt topped out into the regular trading hours open, and we saw continuation down to lower lows; 4hr RSI pushing oversold again as interest rates are heading higher to the test of October highs (TLT going down = rates going up). Rates heading higher are what has weighed on the Nasdaq as it turned out to be the canary in the coalmine, with other stuff catching up yesterday.

TLT 6 months, daily candles Pushing into those October lows as the daily RSI gets closer to oversold territory

January Vix 3 months, daily candles Half of the last 2 weeks of relentless vol crush was taken back in a few hours here, as the volatility complex finally took notice of the accelerating broad market weakness

Spot Vix 3 months, daily candles Bounced off the 16 area and getting over recent highs from the past couple weeks; A brief push over the 20 psychological level today is being pushed back on initially. Wider moves and ranges on everything, both directions, should be expected.

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