Good Morning Traders!

Today's session kicks off a shortened trading week following the MLK holiday, with markets opening against a more complex global macro backdrop. Equity markets are reacting to a sharp move higher in Japanese interest rates, which is pressuring global risk assets. Rising JGB yields are forcing an unwind of long standing carry trades, tightening global financial conditions and weighing on equities, particularly growth and high beta sectors. 

On the data front, we have the US Weekly ADP Employment Change, followed by the January Philly Fed Non Manufacturing Business Outlook Survey and Redbook Retail Sales prints, offering insights into near-term consumer demand. Treasury supply remains active with the 4 and 8 Week Bill Announcement at 11:00AM ET, the 3 and 6 Month Bill Auction at 11:30AM ET, and the 52 Week Bill Auction at 1:00PM ET.  With global rates moving higher and liquidity conditions tightening, expect elevated volatility and sharp intraday rotations.

Now, we will discuss SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, and TSLA.

SPDR S&P 500 ETF Trust (SPY)

SPY is currently trading around 681.50 as the market digests global rate pressure and early week positioning. If buyers can stabilize above this zone, a push toward 683.25 becomes the first upside test. Holding strength there may open a path toward 685.00, where supply is likely to respond. Continued acceptance above that area could allow an extension into 687.00, but momentum will need to remain steady as volatility remains elevated. 

If SPY fails to hold 681.50, sellers may press price into 679.75. A loss of that level increases downside risk toward 677.90, with further weakness exposing 675.75. A sustained move below that region would suggest risk appetite fading further as macro pressures weigh on equities.

Invesco QQQ Trust Series 1 (QQQ)

QQQ is currently trading around 610.00, sitting at an important inflection point after recent distribution. Buyers will want to reclaim 612.00 early to signal stabilization, which could lead to a test of 614.25. If momentum builds, upside extension toward 616.75 is possible, though participation will need to broaden to sustain gains. 

If QQQ loses 610.00, downside pressure may accelerate into 607.75. Continued selling could drag price toward 605.50, with a deeper flush opening risk into 602.75. Weakness here would reflect continued de risk behavior in higher beta technology.

Apple Inc. (AAPL)

Apple is currently trading around 252.50 as buyers attempt to slow recent downside momentum. This area has acted as a short term decision zone, and holding here could allow price to rotate higher toward 254.25. If buyers maintain control, a follow through into 256.00 becomes possible, with an upper extension toward 258.00 if broader market conditions stabilize. 

If Apple fails to hold 252.50, sellers may step back in and push price into 250.75. A break of that level exposes 248.90, with further downside risk toward 246.50 if selling pressure persists. Continued weakness would signal that dip buyers remain cautious amid macro uncertainty.

Microsoft Corp. (MSFT)
Microsoft is currently trading around 452.75 and remains under pressure after recent weakness across large cap technology. Buyers need to defend this zone to attempt any meaningful bounce, with 455.00 acting as the first upside test. Holding above that level could allow price to work into 457.25, though upside attempts may remain choppy. 

If MSFT breaks below 452.75, downside continuation toward 450.50 becomes likely. Further weakness could extend into 447.75, an area where buyers may attempt to stabilize. Failure to do so would reflect continued rotation away from mega cap leadership.

NVIDIA Corporation (NVDA)

NVIDIA is currently trading around 181.75 as the market reassesses growth exposure amid tightening global financial conditions. Holding this level could produce a relief push toward 184.00, with upside continuation targeting 186.25 if buyers regain confidence and risk appetite improves. 

If 181.75 gives way, sellers may pressure price into 179.50. Failure to stabilize there opens downside risk toward 176.75, reflecting increased sensitivity within the semiconductor space during risk off environments.

Alphabet Inc Class A (GOOGL)

Alphabet is currently trading around 321.00 as buyers attempt to build support following recent volatility. A successful defense could lift price into 323.50, with further upside toward 326.25 if momentum builds and the broader tape firms up. 

If GOOGL loses 321.00, sellers may push price toward 318.75. Continued weakness exposes 316.25, and a sustained move below that level would suggest buyers stepping aside as uncertainty persists.

Meta Platforms Inc (META)

Meta is currently trading around 604.75, hovering near a key short term balance zone after recent pressure. Holding this area may allow a rotation higher toward 608.00, with upside continuation into 611.50 if buyers show commitment and the market tone improves. 

If sellers regain control below 604.75, downside targets come into focus at 601.25, followed by 597.75. Weakness beyond that would indicate continued pressure on higher beta names.

Tesla Inc. (TSLA)

Tesla is currently trading around 427.00 as volatility remains elevated and sentiment stays fragile. Buyers will want to reclaim 430.00 to attempt a move into 434.25. If momentum builds, price may extend into 438.00, though conditions remain headline sensitive. 

If TSLA loses 427.00, downside acceleration toward 423.75 becomes likely. Continued selling could expose 419.50, signaling broader risk reduction across speculative and momentum driven equities.

Final Word: Trade selectively, stay patient, and respect risk as markets adjust to shifting macro dynamics. Good luck and trade safely!

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.