Market Analysis

SPY|QQQ Monday 8AM 1/26/2026

January 26, 2026 3 min read

Market Sentiment Analysis:

Overall Market Sentiment:

SPY (S&P 500 ETF):
Analyzing the SPY 30-minute intraday chart over the past 30 days, recent 13 bars show a moderate upward momentum with consistent higher lows indicating buyer interest. Volume trends reveal a gradual increase during upward moves, which is a positive sign. The recent push appears to be testing resistance around the previous highs. Moving averages (e.g., 9 and 21-period) likely support this upward momentum, suggesting a bullish short-term sentiment.

QQQ (Nasdaq-100 ETF):
The QQQ has mirrored the upward momentum seen in SPY with a similar price development in the recent 13 bars. Volume trends show significant activity during price rallies suggesting strong investor interest. The recent closing prices above previous resistance levels indicate potential bullish sentiment is prevailing with short-term moving averages possibly trending upward.

VXX (Volatility Index):
VXX data indicates a downward trend with the recent bars not showing significant spikes. This reflects a decrease in market volatility and an inclination toward a risk-on sentiment amongst investors. The low levels suggest confidence in the ongoing market rally in SPY and QQQ. Should this trend persist, it could act as a catalyst for continued positive momentum in the equities market.

Sector Analysis:

Performance analysis of sector ETFs shows a general upward trajectory. Notable sectors include XLK (Technology) and XLY (Consumer Discretionary) with steady upward price movements over recent sessions. These sectors are likely experiencing capital inflows, indicating a preference for growth-oriented and cyclical stocks. Sector rotation is evident with defensive sectors like XLP (Consumer Staples) and XLU (Utilities) showing relative underperformance.

Key Levels to Watch:

SPY:
– Support Levels: Around 686.50 to 688.00, observed as previous consolidation points.
– Resistance Levels: Approximately 690.00 to 691.00, representing previous highs tested in recent sessions.

QQQ:
– Support Levels: Around 620.00 to 621.00, aligning with previous consolidation zones.
– Resistance Levels: 623.00 to 624.00, which are recent highs yet to be decisively breached.

Scenarios:

Bullish Scenario:
For both SPY and QQQ, maintaining support above the aforementioned levels can set up a further rally. Key drivers could include favorable economic releases, earnings beats from leading companies, or technical breakouts above resistance levels.

Bearish Scenario:
A failure to hold above key support levels could trigger selling pressure. Negative catalysts might include disappointing economic data, escalating geopolitical concerns, or significant technical breakdowns below the moving averages.

Overall Commentary:

The current market environment reflects cautious optimism as indicated by the upward momentum in SPY and QQQ and calming volatility in VXX. The active rotation into growth sectors like Technology suggests some constructive risk appetite. However, traders should remain vigilant for any macroeconomic surprises or geopolitical headlines that could disrupt the current trend. For short-term momentum traders, the focus should be on key technical levels and sector performances for directional cues.

Charts: