loader image

Stocks Are Gaining Steam But the Market Is at a Fork In the Road — Key Levels to Watch

by | Jan 31, 2025

Stocks are up nicely across the board and so far, I like what I’m seeing and I’m starting to get bullish again.

But remember, we have a couple of forks in the road because the market is vulnerable right now.

The long bond (TLT) is approaching its 50-day moving average, so major resistance while remaining in a tight trading range.

We also got Personal Income and Outlays this morning, which came in at 2.6% year over year, in line with the consensus so it didn’t have much of an immediate effect on the market. Core PCE also was in line with expectations at 2.8% year over year. This tells us that we’re not making any progress over the past year.

It’s also Friday, when stocks usually peter out around 2 p.m. ET and don’t give much directional bias into the close,which of course makes it difficult to day trade.

Bitcoin, meanwhile, is also right at resistance levels, and my concern is that it just bounced lower off resistance. I wouldn’t rush into BTC right now because the consolidation seems to be getting tighter and I’d like to see it break through resistance.

And I mean a real breakout.

If you look at the S&P 500 Equal-Weight ETF (RSP), there’s been no trend at all — it was just moving sideways. But we broke above that recent range yesterday, and we’re even higher so far today, which is great if we can keep that momentum going.

As long as we don’t come down today and we can make a higher high, that could be big for next week…

I’ll cover all that, my daily hitlist of longs and shorts and more in this morning’s “Premarket Must Watch” video!

Roger Scott
Roger Scott Trading

Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!

Important Note: No one from The TradingPub team or Roger Scott Trading will ever message you directly on Telegram.

P.S. My Top Stock Picks for February

Ever since Fed Chair Jerome Powell’s rate announcement, the market’s been sending signals that make me believe we’re at an inflection point.

At 1 p.m. ET today, Jan. 30, I’m laying out my complete outlook for February — including why certain sectors are flashing patterns that suggest we might be approaching a critical juncture.

I’ve mapped out specific stocks that could lead the next big move, whether we break to new highs or test lower levels.

Either way, these are the stocks you should be watching.

While I cannot promise future returns or against losses…

I’ll share my complete analysis, including my highest-conviction stock picks for February — all based on what the market is telling us right now.

Join Me at 1 PM ET!

WRITTEN BY<br>Roger Scott

WRITTEN BY
Roger Scott

What to read next

Have any questions? Contact Our Customer Service Team

Share via
Copy link