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 hand in hand to lower rates. IWM’s rally to start the year is a promising sign, but it’s not guaranteed to continue. As earnings season kicks into full swing in the coming weeks, it’s key for investors to watch the numbers of the largest stocks in the Russell 2000 index. Numbers and forecasts need to justify the higher premiums for the rally to continue.
As for The Dow Jones, a rally in industrial and “classic” American stocks has boosted the index higher. Household names like Boeing, Caterpillar, Chevron, 3M, and more are leading the way, meanwhile technology stocks have lagged behind (besides memory stocks like Micron). This is a clear indication that investors are favoring industrial names, likely because of the Trump administration’s push to boost domestic manufacturing. Earnings season will also be a big test for these companies as their stocks rally into multi-years highs. We’ll be analyzing earnings, adding new, and adjusting our positions as needed over the coming weeks. Earnings season is the ABSOLUTE best time to find new opportunities on the market, paying attention to the data is critical.
Geopolitical Atmosphere:
- Iran: the protests in Iran have cooled over the weekend, but there are still some worries that the U.S. will intervene with a strike against the Iranian regime, which would trigger a possible response from Iran to strike oilfields in the Gulf (near Saudi Arabia). This may pressure oil prices higher, but so far we haven’t seen a big rise in the price per barrel.
- Greenland: the U.S. push for Greenland escalated over the weekend as the Trump administration threatens 10% tariffs on countries in the European Union that aren’t backing the acquisition on February 1st. Europe has already responded with their own measures to this. This is expected to be an ongoing theme / tension for the coming weeks, maybe even months. Greenland’s geographic location and mineral-rich land makes it a high value target for the U.S.
Economic Calendar:
- Construction Spending Report (Wed)
- Q3 GDP Report (Thu)
- PCE / Inflation Data (Thu)
- Consumer Sentiment (Fri)
We’ll be covering the results of these reports and their implications in our daily morning updates for Hyper Stocks Pro members.
- Netflix, 3M, USB, United Airlines, Interactive Brokers (Tue)
- Johnson & Johnson, Prologis (Wed)
- Procter & Gamble, GE Aerospace, Abbott, Freeport McMoran (Thu)
These are just SOME of the most significant earnings happening this week. There are dozens of companies set to report, we’ll be monitoring the data, adding to, and adjusting our holdings as the reports are released.
SPY Technical Analysis:
SPY reached a high of 697.30 before pulling back last week, making that the main resistance in focus going forward. A breakout above that level is considered a “blue-sky” breakout, meaning there are no more resistance points beyond that level. There are many positive catalysts around the economy, but also a lot of geopolitical uncertainty. We’ll take it all into account as we plan our trading and investing strategy.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always conduct your own research or consult with a licensed financial advisor before making investment decisions.
Hyper Stocks and its contributors may hold positions in some of the securities or assets mentioned above. These positions are subject to change without notice. Any opinions expressed reflect current views at the time of writing and are not guarantees of future performance. Past performance does not guarantee future results.