Date: Fri, Jan 30, 2026 at 6:33 AM
Subject: Market Update: Shift Toward Caution Post-FOMC
Dear SPR Premium Subscribers,
Following yesterday’s FOMC meeting, the momentum in U.S. equities has begun to taper. Today, we observed a significant intraday sell-off, with downside volatility expanding beyond our initial projections. Although the market managed to pare some losses toward the closing bell, the overall price action remains concerning.
While this mid-to-late week turbulence aligns with the timeline discussed in last week’s outlook, the magnitude of the decline has exceeded our expected range. ### Weekly Trend Assessment With only one trading day left in the week, the current price action suggests a weakening of the broader bullish trend. Barring a dramatic reversal in tomorrow’s session, the weekly trend strength is likely to fall short of the threshold required to sustain the current rally. Consequently, we anticipate a pivot toward a corrective phase (adjustment trend) starting next week.
Note: Final confirmation of this trend shift will be determined upon tomorrow’s weekly market close.
Strategy & Recommendation
In light of this technical deterioration, our stance has shifted to defensive:
Avoid Chasing Bounces: Even if we see short-term technical rebounds following today’s drop, they should be viewed with skepticism.
Wait and See: We recommend a conservative "wait-and-see" approach rather than aggressive entry at these levels.
Capital Preservation: Prioritize liquidity and observation until a clearer bottoming signal or trend stabilization is confirmed.
SPRㅣ Stock Pretiming Report team.
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