Podcast
Next Day Prep #193: Trade War Sparks S&P & Nasdaq Dive Key Tech Exceptions – Tuesday 1/20/2026
Key takeaways
- Stay vigilant with critical support levels at 675 for SPY and 605 for QQQ . Keep an eye on sector rotation and institutional rotation dynamics for trade opportunities.
Next Day Prep: Trade War Sparks S&P & Nasdaq Dive Key Tech Exceptions
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood:
Welcome to Next Day Prep! Tuesday’s market session saw significant volatility with the S&P 500 and Nasdaq both experiencing sharp declines due to escalating geopolitical tensions.
Overnight Headlines:
The market reacted to President Trump’s call for tariffs on NATO members regarding Greenland, leading to a widespread sell-off. The S&P and Nasdaq closed below their 50-day moving averages amid concerns of a potential trade war.
Economic Announcements:
- Wednesday: Trump speaking at Davos, PCE data release
Earnings Highlights:
- 3M: Beat earnings but issued cautious guidance, causing a 7% stock drop
Top Movers:
Despite the overall market decline, some stocks showed relative strength:
- Intel (INTC): Up 3.4% on upgrade
- Micron (MU) and Sandisk: Resilient due to AI-driven memory shortage narrative
Quick Trade Ideas:
Watch for potential long setups in stocks like:
- FormFactor (FORM): Showed strong performance amid market selloff
- SkyWater Technology (SKYT): Demonstrated higher lows during the downturn
- MKS Instruments (MKSI) and AMD: Potential leaders if market stabilizes