The S&P 500 was down for a second week, closing at 6,915. On Monday the markets were closed for MLK Jr. day, but Tuesday was a major sell off as Trump escalated his Greenland and tariff threats. The 30-stock Dow slipped about 1.8%, while both the S&P 500 and NASDAQ 100 lost roughly 2.1%. A drawdown in technology stocks led the selloff, and all three benchmark indices logged their worst daily performances since Oct. 10. The selloff also dragged the S&P 500 and NASDAQ 100 into negative territory for 2026. Wednesday was rhetoric reversal day as the S&P 500 gained over 1% after Trump said he would not move to acquire Greenland by force, instead announcing a deal framework. This move continued into Thursday as European tariffs that were set to begin Feb slipped off the table. On Friday the S&P 500 had a slight gain capping a week of trade tensions and geopolitical risk. From a technical perspective lets briefly discuss Dow Theory which relies on the behavior of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA). Charles Dow, who died in 1902, believed that these two sectors together reflect the health of the overall economy. Industrials produce goods and Transports move those goods to market. If both are rising or falling together, the market trend is considered confirmed. If they diverge, it may signal a weakening trend or potential reversal. On 21 January DJIA hit a fresh alltime high, and on 22 January DJTA its new high, confirming a bullish outlook. Next week all revolves around earnings, with Microsoft, Tesla, Meta and Apple reporting mid-week. It sure would be nice to see good earnings complement the Dow Theory with the S&P 500 crossing above 7,000 next week. For TSP TIPS it was a good holiday shortened week, with the S fund making a record high on Thursday, while the I fund hit that mark on both Thursday and Friday. As such, we recommend no changes to our current investment mixes.
The S&P 500 was down for a second week, closing at 6,915. On Monday the markets were closed for MLK Jr. day, but Tuesday was a major sell off as Trump escalated his Greenland and tariff threats. The 30-stock Dow slipped about 1.8%, while both the S&P 500 and NASDAQ 100 lost roughly 2.1%. A drawdown in technology stocks led the selloff, and all three benchmark indices logged their worst daily performances since Oct. 10. The selloff also dragged the S&P 500 and NASDAQ 100 into negative territory for 2026. Wednesday was rhetoric reversal day as the S&P 500 gained over 1% after Trump said he would not move to acquire Greenland by force, instead announcing a deal framework. This move continued into Thursday as European tariffs that were set to begin Feb slipped off the table. On Friday the S&P 500 had a slight gain capping a week of trade tensions and geopolitical risk. From a technical perspective lets briefly discuss Dow Theory which relies on the behavior of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA). Charles Dow, who died in 1902, believed that these two sectors together reflect the health of the overall economy. Industrials produce goods and Transports move those goods to market. If both are rising or falling together, the market trend is considered confirmed. If they diverge, it may signal a weakening trend or potential reversal. On 21 January DJIA hit a fresh alltime high, and on 22 January DJTA its new high, confirming a bullish outlook. Next week all revolves around earnings, with Microsoft, Tesla, Meta and Apple reporting mid-week. It sure would be nice to see good earnings complement the Dow Theory with the S&P 500 crossing above 7,000 next week. For TSP TIPS it was a good holiday shortened week, with the S fund making a record high on Thursday, while the I fund hit that mark on both Thursday and Friday. As such, we recommend no changes to our current investment mixes.