Charting the S&P 500: New Target After Yet Another Milestone
Here's the next index target where buyers should step up.
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Another very tight range for the S&P 500 index in the first full week of trading in 2026.
Markets were on the rise all week long, with a broad rally kicking off the new year. The Santa Claus rally indicator was a bust, however there are two other indicators that seem to be more important to the market's performance in the year ahead.
First off is the first five days of the new year, which ended this past Thursday. As the saying goes, "as go the first five days of January, so goes the month." Hence, a positive five days should lead to a positive month. Next, a positive January often (not always) leads to a positive year. That was the case in 2025 and 2024 and might happen this year, but we need to see it play out.
As for the S&P 500, we are right near the milestone of 7,000, and once that's penetrated, we could see a few more up sessions beyond that point. The arrow at the top still shows the resistance but it is getting tested. Indicators are still mixed but the price action remains bullish, and that is dominant.
