SPY Trends and Influencers January 31, 2026

• Posted by Greg Harmon
• on January 31st, 2026

Last week, the review of the macro market indicators saw heading into next week’s FOMC meeting, equity markets showed resilience snapping back after a news driven sell off to start the week. Elsewhere, looked for Gold ($GLD) to continue the uptrend in pursuit of $5000/oz while Crude Oil ($USO) drifted in the consolidation range. The US Dollar Index ($DXY) was shifting to the downside while US Treasuries ($TLT) continued to hold at 3½ month lows in consolidation and looking better lower. The Shanghai Composite ($ASHR) looked ready to continue the uptrend at 10½ year highs while Emerging Markets ($EEM) continued to make new all-time highs in their uptrend.

The Volatility Index ($VXX) looked 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 with the IWM leading. On the shorter timeframe the IWM was also strong but possibly ready for a pause after new all-time highs. The SPY and QQQ continued to be stuck in consolidation.

The week played out with Gold ripping higher to touch $5600/oz before a late week blow off while Crude Oil found a bid and also moved higher. The US Dollar dropped to a 4 year low before finding support after the FOMC meeting while Treasuries held in the low end of the consolidation range. The Shanghai Composite bounced back to the 10½ high while Emerging Markets continued the record setting pace through midweek before profit taking.

Volatility held in a tight range in the teens, ending little changed. This offered equities the opportunity to move higher. The SPY rose to a new all-time high Tuesday and the QQQ retested its high before both saw profit taking at the end of the week. The IWM continued its drop from the high the prior week and ended back at its moving average. What does this mean for the coming week? Let’s look at some charts.

SPY Daily, $SPY

The SPY came into the week just below the 161.8% extension of the retracement of the drop to the Liberation Day low. It started higher Monday and continued Tuesday to a new all-time high close. It held there Wednesday and then saw some selling pressure Thursday and Friday to end the week slightly positive. The RSI is falling back to the midline in the bullish zone and with the MACD flat and positive.

The weekly chart shows a near doji candle with a tight range between the 20 week SMA and the 261.8% extension of the retracement of 2022 drop. The RSI is holding in the bullish zone with the MACD drifting lower and positive. There is support lower at 689 then 685 and 680 before 676.50 and 674. There is resistance above at 692 and 696. Uptrend.

SPY Weekly, $SPY

With the January FOMC meeting in the books and a formal announcement of Kevin Warsh as the new Fed Chair nominee, equity markets showed strength holding near and setting new highs. Elsewhere, look for Gold to pause in the uptrend after tagging $5600/oz and pulling back while Crude Oil moves higher in the consolidation range. The US Dollar Index is finding its footing after a 4 year low while US Treasuries continue to hold in the lower end of the consolidation zone and looking better lower. The Shanghai Composite looks ready to continue the uptrend at 10½ year highs while Emerging Markets reset momentum gauges after making new all-time highs in their uptrend.

The Volatility Index looks to continue to hold 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 IWM is also resetting with a retest of the prior high as support. The SPY and QQQ continue to be stuck in consolidation at their highs. Use this information as you prepare for the coming week and trad’em well.

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