We can see below that the NQ8 and the largest section of the S&P500 are in a short mode now. This is probably due to TSLA but also to uncertainties related to the coming AAPL earnings.
ARKK continued to fall, but the semiconductors sector was also under pressure yesterday.
Drugs and especially biotech were probably one of the few sectors that resisted yesterday.
On a broader picture, we can see below that the NHNL indicator is weakening, which is market negative.
The 10Y Treasuries continue to be sold.
As a consequence, even tough the S&P500 is still cheap in terms of yield comparison, the upside is now limited to $4000.
Conclusions:
We should expect more preemptive selling before the earnings season starts at the end of January.
Stay safe under the current weather or even war time conditions.
As many, I will be taking a few days off and will be back with new comments in January.
