Focus: USMarket Close: Tue, 20 January 2026
At market close, US markets experienced broad-based declines amid a surge in volatility, signaling heightened investor caution. Mega-cap technology stocks, including key members of the Magnificent 7, weighed heavily on major indices like the S&P 500 and Russell 1000. The sell-off was triggered by President Donald Trump's escalation over Greenland, where he threatened escalating tariffs on imports from several European NATO allies (including Denmark, Germany, France, the UK, Norway, Sweden, Finland, and the Netherlands) unless they support U.S. efforts to acquire or take control of the territory. Tariffs were set to begin at 10% on February 1 and rise to 25% on June 1. This sparked broad risk aversion, with investors shifting toward safe-haven assets amid fears of a renewed trade conflict reminiscent of earlier disruptions. Tech and growth stocks led the declines, with heavy selling in semiconductors and large-cap names (Nvidia, Broadcom, and others down significantly). Cyclical sectors and industrials also weighed on performance, amplified by some company-specific news like weaker guidance from names in the industrial space. Defensive sectors such as Consumer Staples demonstrated relative strength, hinting at a rotation toward safer assets. Cross-asset moves showed a weakening dollar against the euro, while cryptocurrencies mirrored equity weakness. This setup reflects ongoing risk aversion as participants position for potential economic shifts ahead. The moves erased early 2026 gains for the S&P 500 and Nasdaq, flipping them negative year-to-date at the close. Swing Trading Ideas (1–4 Weeks) - TEVO MethodologyToday's TEVO swing trade shortlist features three Pending Medium-Term Reversal long setups concentrated in the Consumer Staples sector. These opportunities target oversold conditions with advancing medium-term momentum, positioning for potential 1-4 week swings. The configurations exhibit solid hit rates, emphasizing high-probability entries amid current market rotations.
TEVO trades pick oversold/overbought but improving setups with positive expected value, strong historical hit-rates, giving you only the highest-probability swing opportunities each week. Market MovementsMajor US indices posted sharp losses, with the S&P 500 and Russell 1000 both declining over 2%, driven by weakness in the Magnificent 7 where names like NVIDIA and TESLA fell more than 4%; meanwhile, the VIX spiked dramatically, underscoring rising uncertainty. Consumer Staples led with modest gains, while sectors like Consumer Discretionary and Information Technology lagged significantly, as seen in equal-weighted GICS performance. Standout individual movers included Health Care names surging ahead, contrasting with steep drops in Communication Services and tech-adjacent stocks. This risk-off rotation into defensives suggests investors are hedging against volatility, and with Pending Medium-Term Reversal signals emerging in some underperformers, mean-reversion plays could gain traction if broader sentiment stabilizes. Market Snapshot
Quantmatix Success StoriesOur signals shone last week, with Medium-Term and Short-Term Reversals delivering gains up to 16.6% on longs and shorts, highlighting Quantmatix's edge in capturing timely market moves.
Disclaimer: These insights are generated using AI and are provided for informational purposes only. They do not constitute financial advice or a recommendation to buy or sell any security. The content may be incomplete or contain errors and should not be relied upon for investment decisions. Always consult a qualified financial adviser before making financial choices. |
-
S&P 500 Erases 2026 Gains as Tariff Fears Trigger Risk-Off
North America1 1 4
Focus: US