Date: Sun, Jan 25, 2026 at 3:23 PM
Subject: Weekly Market Update: Volatility Driven by Geopolitical Headlines and FOMC Outlook
Dear SPR Premium Subscribers,
At the beginning of this week, heightened tensions surrounding President Trump’s stance on Greenland and the announcement of potential tariffs on European countries triggered a sharp sell-off across the market. This sudden escalation of geopolitical risk significantly disrupted investor sentiment and led to a rapid breakdown in the buy–sell flow balance.
However, following the subsequent announcement to withdraw the proposed tariffs, the market rebounded quickly. As a result, this week was characterized by elevated volatility, driven largely by external and non-fundamental factors.
Due to these developments, the USMAI weekly trend did not deliver the strong bullish green candle that had been anticipated. Nevertheless, after the sharp decline on Tuesday, January 20, the market demonstrated a swift recovery, ultimately closing the week with a green candle that reflects a rebound from the recent pullback. While the broader upward trend remains intact, this week’s price action suggests a transition into a short-term corrective phase rather than a continuation of aggressive upside momentum.
Importantly, the overall trend structure has not been broken. The primary uptrend is still being maintained, and our existing outlook remains unchanged. Based on current conditions, the market is still expected to sustain its upward trend into early to mid-February.
Looking ahead to next week, daily momentum is expected to gradually weaken starting in the early part of the week. In particular, increased fluctuations are anticipated around the January FOMC meeting scheduled for Tuesday, January 27. Accordingly, next week is also likely to be marked by heightened volatility.
The outcome of the upcoming FOMC will serve as a critical variable, potentially influencing whether the current buy–sell balance within the weekly trend can be sustained. Depending on the result, it may also impact the durability of the projected upward trend.
Barring any unexpected shock or sharp downside event in the daily flow, the broader market is expected to continue moving within the existing weekly uptrend range, supported by a relatively stable buy–sell balance. However, given the significance of the upcoming FOMC event, we strongly recommend adopting a cautious and flexible strategy when responding to market movements next week.
Thank you, as always, for your continued trust.
SPRㅣ Stock Pretiming Report team.
No comments:
Post a Comment