Key Takeaway
Happy new year! Our indicators remain in moderate risk-on mode as the recent equity rally paused. The S&P 500 faces initial resistance around $4,800, which means short-term upside could be limited. Historically, January tends to be a difficult time for the S&P 500, suggesting that volatility could remain elevated.
We have been selective in individual stock and sector ETF positions, and raised some cash over the past month. Defensive sectors are holding up relatively well, and we are still overweight healthcare given long-term trend support.
Healthcare holding relative support
