Weekly Stock Market Update & SPY Technical Analysis The Russell 2000 (IWM) outperformed the S&P 500, Nasdaq, and Dow Jones in January as capital flowed to small-cap stocks to kick-off the new year. This is historically a seasonal tendency driven by a phenomenon called the “January Effect,” here are the reasons this happens: Tax-Loss Harvesting: Investors often sell "losers" in December to claim tax losses, then buy back into the market in January, pushing prices up. Portfolio Rebalancing: Institutional investors often reallocate capital to smaller, higher growth names at the start of a new year. During this time, other parts of the market were sitting idle. Large-cap tech mostly consolidated apart from memory stocks like Micron (MU) and Sandisk (SNDK). ...
Weekly Stock Market Update & SPY Technical Analysis We’re only a few weeks into 2026, but already approaching one of the most important weeks of the entire year. The coming days will bring with key earnings data and important monetary policy updates…two of the most influential subjects in market direction. Scheduled Earnings: Boeing / RTX / Northrop Grumman / Lockheed Martin - Aerospace & defense stocks have been among the leaders in the market over the last quarter, making their earnings critical to the industry and the overall index. Many small and mid-cap companies have also enjoyed the rally, including AeroVironment (AVAV), Kratos (KTOS), Red Cat (RCAT). All these stocks are subject to influence by the earnings results of the...
Weekly Stock Market Update & SPY Technical Analysis Major indexes notched another new record last week, but it’s not the usual suspects taking markets to new highs. Since the new year kicked off, the biggest winners have been the Russell 2000 (IWM) and The Dow Jones, not the S&P 500 and the Nasdaq 100, a clear reflection of where large capital is flowing so far in 2026. The Russell 2000 is the small cap index, which is favored to “win this year” as interest rates decline. For years, small cap companies with high debt interest have seen slim profits and slow growth due to tight economic policy, but that’s about to change as the Trump administration and The Fed work...
Weekly Stock Market Update & SPY Technical Analysis Banks begin to report earnings this week, which means it’s officially the start of the first quarterly earnings season of 2026. Seasoned traders and investors understand that this earnings season is critical because it comes just weeks after market valuations fell under concerns and it’ll also test indexes are their record highs. Many stocks are priced for perfection, meaning companies must meet or exceed expectations to avoid furthering concerns and a valuation correction. It sounds intimidating, but it’s also the BEST time to build a list of new opportunities and manage your existing set-ups. Earnings season lets you know how companies are doing behind the scenes and how they’ll do for the...
Weekly Stock Market Update & SPY Technical Analysis The “January Effect” refers to a historical tendency for stocks, particularly small cap names, to perform better in January than in other months. Who benefits from the January Effect?Small caps tend to benefit most because of timing. Around December / year-end, investors sell-off investors often sell off underperforming or losing positions to harvest tax losses. This selling pressure disproportionately impacts smaller, less liquid stocks, pushing prices below fair value. Once the calendar flips to January, that artificial selling pressure fades, fresh capital enters the market, and many of these same small-cap names experience a rebound as buyers step back in. We saw this happen in real time last week as markets pushed...
