Date: Mon, Feb 2, 2026 at 2:51 PM
Subject: USMAI Weekly Trend Update: Confirmation of Correction Scenario
Dear SPR Premium Subscribers,
Last week, we shared two sequential scenarios regarding the USMAI weekly trend outlook. After reviewing this week’s weekly close, we can now confirm that the market ultimately lacked sufficient momentum to sustain an advancing uptrend. As a result, the outlook has formally aligned with Scenario 2 that was previously communicated.
As mentioned last week, the market showed relatively healthy daily upside momentum through early this week. However, following the FOMC event, upside strength weakened noticeably by midweek, after which downside volatility began to emerge. As volatility expanded, intraday declines became larger than initially expected. Although strong dip-buying activity helped reduce the magnitude of losses, the daily trend had already entered a Bearish zone, signaling that the weekly trend transitioned into a correction phase.
Accordingly, by Thursday, the overall weekly trend direction was confirmed as a correction trend.
At this stage, the probability that this corrective phase continues through late February remains high. As we enter early February next week, selling pressure is expected to remain dominant, with additional downside pressure likely to persist. That said, a potential window for downside momentum to moderate and for a short-term rebound attempt to form is projected around Wednesday to Thursday of next week.
However, even if a rebound phase develops from midweek and extends into early the following week, both the duration and upside strength are expected to be limited and temporary. Given the expectation that the weekly correction trend may persist through late February, a defensive and risk-managed approach remains advisable during this period.
We will continue to monitor trend developments closely and provide timely updates as conditions evolve.
SPRㅣ Stock Pretiming Report team.
No comments:
Post a Comment