Republic Risk: Afternoon Update - January 4

With the markets under pressure, let's be sure to stay updated on activity.

Dear Fellow Expat:

The good news (unless you’re looking to short) is that the Russell 2000 has held at 1,950. If it falls under that support, the next level down is 1,900. From there, it’s a long way down if selling picks up.

The selling pressure on the Russell has greatly increased over the last few trading days. It’s uncertain if this is profit taking… Red Sea related… or positioning against the jobs report. We just know we had the strongest buying stretch in a long time, and it’s taking time to unwind. Support levels are very critical right now.

The S&P 500, meanwhile, is locked in a new battle at the 4,700 level. Any break under this level, and we’re likely testing 4,500 next. This chart speaks volumes about the challenges ahead for individuals trying to make sense of these markets. We started the day with a nice pop… only for things to turn back in the afternoon.

Don’t be surprised if there are some sizable moves in the last hour - as institutions position ahead of tomorrow’s job…