Markets came down last week as the major indices declined to start the new year, with a shortened holiday week due to markets being closed on New Year’s Day. However, semiconductors (SMH), energy (XLE), and utilities (XLU) showed strength and ended the week positive. Semiconductor leaders TSM and MU pushed to new highs, driven by surging AI chip demand and regulatory relief after both companies received U.S. export licenses for their China operations. In other news:
Looking ahead, traders will be watching several labor market releases, including the unemployment rate and ADP employment numbers, alongside commentary from Fed speakers and the University of Michigan consumer sentiment report. With the new year starting on a bearish note, the focus now shifts to whether downside momentum persists or if buyers step back in. Let’s see what the charts are saying.
Weekly Analysis
SPY (SPDR S&P 500)
SPY ended the week lower at $683.17 (-1.03%) as traders continue to digest a failed December monthly breakout. The Breakout & Fakeout Candle Coloring Indicator printed a light red candle, signaling that SPY pushed above the November high during December but ultimately closed back below it. With holiday-thinned trading now in the rearview, attention shifts to whether bullish momentum can reassert itself in 2026 or if SPY remains stuck in a choppy consolidation.
QQQ (Invesco QQQ Trust)
Tech remains choppier than the S&P 500, with QQQ closing last week at $613.12 (-1.73%). The ETF printed a gray candle on the Breakout & Fakeout Candle Coloring Indicator, signaling that December price action remained contained within November’s monthly range. With price action coiling, traders are watching for a potential breakout from that November range.
IWM (iShares Russell 2000)
Small caps also pulled back last week, with IWM closing at $248.78 (-1.05%) and printing another monthly fakeout candle. While the ETF pushed to new highs in both October and December, each attempt resulted in light red fakeout candle colors on the monthly chart, signaling a lack of sustained bullish follow-through. With rate cuts expected to remain on pause, attention now turns to whether IWM can continue holding above its 2021 high.
Earnings
Notable Results
NRT (Northern Technologies International)
- EPS: $0.32 vs — est
- REV: $3.06M vs — est
NWGL (Nature Wood Group)
- EPS: $0.00 vs — est
- REV: $8.15M vs — est
TAYD (Taylor Devices)
- EPS: $0.64 vs $0.53 est
- REV: $11.60M vs $10.40M est
ELLO (Ellomay Capital)
- EPS: $0.93 vs — est
- REV: $14.94M vs — est
MKDW (MKDWELL Tech)
- EPS: $(0.02) vs — est
- REV: $1.37M vs — est
DJCO (Daily Journal Corporation)
- EPS: $30.60 vs — est
- REV: $28.41M vs — est
REE (REE Automotive)
- EPS: $(1.22) vs — est
- REV: $0.18M vs — est
DLXY (Delixy Holdings)
- EPS: $0.04 vs — est
- REV: $102.00M vs — est
ANGH (Anghami)
- EPS: $(5.50) vs — est
- REV: $48.44M vs — est
IH (iHuman)
- EPS: $0.06 vs — est
- REV: $28.90M vs — est
AMTD (AMTD IDEA Group)
- EPS: $0.82 vs — est
- REV: $89.04M vs — est
FEBO (Fenbo Holdings)
- EPS: $(4.40) vs — est
- REV: $5.44M vs — est
CODI (Compass Diversified)
- EPS: $(0.01) vs $0.62 est
- REV: $478.69M vs $653.36M est
CETX (Cemtrex)
- EPS: $(35.68) vs — est
- REV: $18.53M vs — est
WFF (WF Holding)
- EPS: $(0.01) vs — est
- REV: $3.52M vs — est
CLWT (Euro Tech Holdings)
- EPS: $(0.02) vs — est
- REV: $5.89M vs — est
CHOW (Atour Lifestyle Holdings)
- EPS: $0.05 vs — est
- REV: $22.85M vs — est
OWLS (Owlet)
- EPS: $(0.05) vs — est
- REV: $3.84M vs — est
EFTY (Efinity Tech)
- EPS: $0.03 vs — est
- REV: $1.80M vs — est
What’s Happening Now
SPY S&P 500
Precious metals dominated 2025, with silver surging 145% and gold rising 62% to lead all global assets. Emerging markets also crushed US large caps with returns exceeding 30%. While technology managed positive gains, traditional safety trades failed. Bonds flatlined, and defensive sectors finished in the negative as capital rotated aggressively out of the dollar and into hard assets.
NFLX Netflix
Netflix has stumbled amid the $82.7B Warner Bros. bidding war, but Q1 offers a historic lifeline. January is NFLX’s dominant month, averaging a massive +14.9% return with a 71% win rate since 2006. With the WBD board still favoring Netflix over Paramount’s hostile attempt, traders are watching if these seasonal tailwinds can breathe fresh life into the stock.
UBER Uber
Uber enters its most powerful statistical window of the year. January and February combine for a 13.5% average return with year-high win rates. This seasonal strength converges with Bill Ackman’s high-conviction bet. With a $2.3 billion stake comprising nearly 20% of his portfolio, Ackman views the company as a mispriced compounder. Will the market agree with him?
Believe it or not, this is just a fraction of what happened in the markets last week. For a full rundown delivered straight to your inbox every weekend, sign up for The Official Trendspider Newsletter!
