SPY Trends and Influencers January 10, 2026

Last week, the review of the macro market indicators saw with 2025 in the books and just 1 trading day into the New Year, equity markets showed modest weakness as they drifted lower in Holiday trading. Elsewhere, looked for Gold ($GLD) to continue the uptrend move toward new all-time highs while Crude Oil ($USO) held at the bottom of consolidation, threatening a renewed downtrend. The US Dollar Index ($DXY) continued the short term drift to the upside in consolidation while US Treasuries ($TLT) continued in consolidation and looking better lower.

The Shanghai Composite ($ASHR) looked to continue the sideways motion in the uptrend while Emerging Markets ($EEM) were on the edge of renewing their uptrend. The Volatility Index ($VXX) looked to continue to hold low in the normal range making it easier for equities to move higher. The charts of the $SPY, the $IWM and the $QQQ remained strong on the longer timeframe. On the shorter timeframe the SPY, the QQQ continued to consolidate in the longer term uptrend. The IWM was at greater risk, having bounced from a lower low.

The week played out with Gold rebounding from a pullback off a new all-time high while Crude Oil found some strength and rebounded higher to resistance. The US Dollar found continued the move higher in a tight consolidation zone while Treasuries held at 4 month lows. The Shanghai Composite broke out of consolidation to the upside, ending at a 10½ year high while Emerging Markets ran up to test the February 2021 all-time high.

Volatility drifted slightly higher but remained in the normal range. This allowed equities to move higher and they did so through Wednesday before profit taking ahead of the non-farm payroll report Friday. That was met with relief and equities continued higher Friday. This resulted in the SPY printing a new all-time high Tuesday and then again Friday with the IWM racking up all-time highs Thursday and Friday. The QQQ remains close just over 2% below its top. What does this mean for the coming week? Let’s look at some charts.

SPY Daily, $SPY

The SPY came into the week holding at the 20 day SMA after a pullback from the all-time high set on Christmas Eve. It drifted higher Monday and continued making a new all-time high Tuesday, before a slight two day move lower. Friday saw it run higher again, closing at another all-time high and starting to separate above the 161.8% extension of the retracement of the drop to the April 2025 low. The RSI is holding in the bullish zone and breaking the negative divergence with the MACD curling up and positive.

The weekly chart shows a strong candle moving over resistance and up to the 261.8% extension of the retracement of 2022. The RSI is holding in the bullish zone with the MACD drifting lower and positive. There is support lower at 692 and 689 then 685 and 680 before 676.50 and 674. There is no resistance above. Uptrend.

SPY Weekly, $SPY

With the first full week of 2026 in the book, equity markets showed renewed strength with several sectors and indexes at all-time highs. Elsewhere, look for Gold to continue the uptrend and more all-time highs while Crude Oil drifts higher at the bottom of consolidation. The US Dollar Index continues the short term move to the upside in consolidation while US Treasuries continue to hold at 4 month lows in consolidation and looking better lower. The Shanghai Composite looks to continue the in the uptrend at 10 year highs after breaking consolidation while Emerging Markets test the 2021 all-time high in their uptrend.

The Volatility Index looks to continue to hold low in the normal range making it easier for equities to move higher. The charts of the SPY, the IWM and the QQQ remain strong on the longer timeframe with the IWM leading. On the shorter timeframe the SPY, and the IWM are also strong forging new all-time highs. The QQQ is bearing the brunt of rotation as it struggles to break higher. Use this information as you prepare for the coming week and trad’em well.

Join the Premium Users and you can view the Full Version with 20 detailed charts and analysis: Macro Week in Review/Preview January 10, 2025

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Dragonfly Caps Blog