Yesterday’s trading session, January 29, 2026, was a rare bird, with the S&P 500 Index (SPX), gold, cryptocurrencies, and several major stocks going down in unison. Typically, we see an absolutely different picture, as these assets used to move in opposite directions. Such a drastic change was driven by three specific factors. Let’s take a closer look at them.
IT sector collapse and margin calls. The tech sector, particularly Microsoft shares, took its walk of shame, with the worst results in recent years. When large funds incur huge losses, they are often forced to unload highly liquid assets like gold to cover damages or meet margin calls.
Profit-taking after hitting new peaks. Bullion prices surged to another all-time high of $5,500 per ounce yesterday, which triggered massive profit-taking amid overall chaos and uncertainty. The precious metal fell by 8% in a blink, erasing trillions of dollars in market capitalization.
Geopolitical tensions and trade standoff. Donald Trump’s renewed threats to impose import tariffs on Europe, Canada, and South Korea were a heavy blow to equity markets. Investors previously viewed this news positively for gold, but current overheated conditions and slumping cryptos (e.g., BTC’s drop to $84,000) are now driving capital into cash (USD) rather than traditional safe havens.
This scenario represents a classic case of deleveraging, with all assets dipping as investors are in need of money in order to balance out their portfolios. Keep in mind that any selloff, even the most chaotic one, implies corrections. As for SPX, its potential local support stands at $6,820. The price is likely to rebound from this threshold in the near term.
The overall recommendation is to buy SPX from $6,820. Profits should be taken at $6,930. Stop Loss could be set at $6,750.
Always size the position so that your potential loss (protected by a Stop Loss) is no more than 1% of your account balance. If you can't open a position that meets such a risk criterion, it's safer to skip this trade and wait for a better, lower-risk opportunity.
This content is for informational purposes only and is not intended to be investing advice.
