S&P500 and Nasdaq 100: E-mini Futures Turn Negative YTD on Long Liquidation Today

• The VIX volatility index surged to a two-month high of 19.02 points, signaling increased fear and expected market volatility ahead of Netflix earnings.
• S&P 500 futures broke through the critical 6,892.50 level and 50-day MA at 6,891.36, with potential downside targets at 6,809.50 and 6,771.50 if selling continues.
• The selloff was driven primarily by long liquidation rather than fresh short-selling, as traders reacted to new Trump tariff threats, with Nasdaq 100 targeting the 24,887.75 swing bottom.

Market Summary: U.S. Equity Futures Turn Negative on Tariff Concerns

Key Market Movements

E-mini S&P 500 futures broke critical support at 6,891.36 and turned negative year-to-date on January 20, 2026, reaching their lowest level since December 19. The index breached both the 50-day moving average and the key 6,892.50 level following a gap down through an uptrend line established November 21.

Nasdaq 100 futures demonstrated greater weakness, breaking below multiple support levels including the 50-day moving average at 25,574.74 and the intermediate 50% level at 25,411.75. The index tested intraday lows near 25,095.25, with bears targeting the swing bottom at 24,887.75.

Market Drivers

The selloff was triggered by President Trump's new tariff threats against NATO members and the European Union. Technical analysis indicates the decline was driven primarily by long liquidation rather than fresh short-selling, suggesting existing position holders exiting rather than new bearish bets.

The VIX volatility index surged to a two-month high of 19.02, signaling elevated fear and expectations of continued market turbulence.

Critical Levels

For the S&P 500, recovery above 6,892.50 could trigger a rebound toward 6,980.75, while failure to reclaim this level may lead to further declines toward 6,809.50 and 6,771.50. The Nasdaq faces resistance at the 25,574.74-25,618.50 cluster.

Corporate Focus

Netflix (NFLX) was scheduled to report Q4 earnings after the close, standing as the only FAANG stock posting gains during the session, potentially setting the tone for the broader technology sector.