Date: Mon, Jan 5, 2026 at 1:40 PM
Subject: Weekly U.S. Market Outlook Update and Key Turning Point Ahead
Dear SPR Premium Subscribers,
Over the course of this week, the U.S. equity market has exhibited a weaker-than-expected performance, prompting the weekly trend to show early signs of transitioning into a corrective phase. While the current trend position has entered the Bullish zone, it is important to note that the market remains near the boundary between the Bullish and Bearish zones. As a result, the overall direction of the trend has yet to become clearly defined.
Given this positioning, there is a high probability that a meaningful shift in the market outlook may emerge over the next one to two weeks.
Based on the daily and weekly outlooks confirmed thus far, the U.S. market is expected to post a healthy upward move next week, likely closing with positive momentum and green candlestick formations, in line with our prior expectations. However, starting approximately two weeks from now, the daily and weekly projections begin to diverge. Consequently, the second week of January is expected to serve as a critical inflection point for the market.
At this stage, two primary scenarios should be considered:
Scenario 1:
If, following confirmation of next week’s daily trend by Friday’s close, the subsequent week also develops into a broad-based upward move—contrary to the currently anticipated risk scenario—then the weekly outlook would align with a strong bullish continuation. In this case, there is a high likelihood that a robust uptrend could persist through mid to late January.
Scenario 2:
If, after next week’s daily trend is confirmed, the following week unfolds as currently projected—entering a sustained decline within the Bearish zone—the prevailing weekly uptrend would likely fail. Under this scenario, the market would be expected to transition into a broader bearish phase, with downside pressure potentially continuing through late January. A rebound trend would then be more likely to emerge around early February.
At present, both scenarios remain viable, making the market behavior following next week’s daily and weekly closes extremely important. The confirmation at that point is expected to drive significant changes in the forward outlook.
In light of these conditions, we strongly recommend maintaining a cautious and disciplined approach to portfolio management. We sincerely hope this guidance supports your pursuit of successful investment outcomes.
Should you have any questions or require further clarification, please do not hesitate to contact us.
Thank you.
SPRㅣ Stock Pretiming Report team.
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