Notice: The Weekend Report is provided for informational and educational purposes only and is not intended to be used as a stock-picking service or as financial advice. The charts and accompanying research are designed to support your analysis, serving as indicators rather than direct recommendations to buy or sell any security. The creator assumes no responsibility for actions taken by readers and strongly encourages individuals to fully understand the associated risks and potential outcomes before making investment decisions. Please note that any charts and/or information are intended to aid in research and should not be considered a definitive part of your personal trading strategy. Not all charts will lead to actionable buy or sell signals at any given time. Individuals should consider consulting a qualified financial advisor before making any investment decisions.
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SYS Daily Report – Weekend Edition
Market Commentary
The intro to this weekend’s report will be short and concise. The market is currently being dominated by the 10-year Treasury “wrecking ball” and the strength of the U.S. dollar. This volatility was amplified by a hotter-than-expected non-farm payrolls report on Friday, causing the indexes to close near their weekly lows.
Looking ahead to next week, it will be critical to monitor these factors. As we’ve been tracking, the “Magnificent Seven” stocks are all testing major support levels, along with the broader indexes. They are sitting at a critical line of technical support that can only be described as do-or-die.
It will be interesting to see if bond vigilantes emerge or if any policymakers begin discussing measures to weaken the U.S. dollar. Many of the Trump administration’s policies supported a stronger U.S. dollar, so it will be critical to monitor how this unfolds.
Meanwhile, gold appears poised for a potential breakout. Make sure to keep an eye on downside risks while staying ready to act on any opportunities as these dynamics continue to evolve.
The Red-Light/Green-Light Breadth System
After attempting to signal a green light, the breadth system failed and continued to push lower. On Friday, markets faced broad-based declines, with declining stocks outpacing advancing ones by more than 4-to-1 on the NYSE and over 3-to-1 on the Nasdaq. Elevated selling pressure, driven by rising bond yields and stronger-than-expected employment data, fueled a risk-off sentiment across all major equity sectors.
S&P 500 – Daily Chart
The S&P 500 closed at 5,827.04, down 1.5% for the day and 1.9% for the week. The index sits more than 2% below its 50-day moving average, a key technical level. This breakdown signals increasing investor concerns about prolonged inflation and sustained higher interest rates. A move back above the 50-day moving average would be necessary to suggest a recovery in sentiment, while further declines could test the 200-day moving average, a crucial support level.
Nasdaq – Daily Chart
The Nasdaq Composite ended at 19,161.63, a decline of 1.6% for the day and 2.3% for the week. The index remains firmly below its 50-day moving average, with growth-oriented technology stocks particularly sensitive to rising bond yields. These yields increase the discount rate used to value future earnings, pressuring the tech sector. If the Nasdaq fails to regain its 50-day moving average, it may face further downside.
Dow Jones Industrial Average – Daily Chart
The Dow Jones Industrial Average fell 1.6%, closing at 41,938.45, with a weekly loss of 1.9%. The index continues to trend below its 50-day moving average and is now nearing its 200-day moving average, a critical support zone if 41,600 doesn’t hold. Interest rate-sensitive sectors like financials and real estate led the decline, further weakening sentiment for the blue-chip index.
Russell 2000 (ETF) – Daily Chart
The Russell 2000, representing small-cap stocks, dropped 2.2% to 2,189.23, posting the largest percentage loss among major indexes on the day. The index is now nearing its 200-day moving average, which could serve as a key inflection point. Small-cap companies, often more vulnerable to rising borrowing costs, remain under significant pressure as bond yields climb.
10-Year US Treasury Yield
The yield on the 10-year Treasury note rose to 4.776%, its highest level since November 2023. This sharp increase reflects heightened term premiums as investors demand greater compensation for holding long-term bonds. The rare “bear steepening” of the yield curve highlights economic uncertainty, with potential implications for equity valuations and global growth expectations.
US Dollar – Weekly Chart
The U.S. Dollar Index strengthened by 0.46% to 109.49, driven by rising Treasury yields. The dollar’s appeal as a safe haven also grew amid risk-off sentiment in equity markets, further pressuring other global currencies like the euro and the British pound.
Crude Oil – Weekly Chart
Crude oil prices rose nearly 4% to a three-month high of $76.57 per barrel as price action attempts to break out from its technical pattern. The gains were supported by U.S. sanctions targeting Russia’s oil and gas sector, which raised concerns about supply disruptions. Energy stocks were a bright spot in an otherwise bearish market, with the sector gaining 1.1% for the day.
TSX – Daily Chart
Canada’s TSX Composite Index declined 1.2% to 24,767.73, its largest drop since December 18. Rising bond yields and profit-taking after 2024’s strong 18% gain weighed on the index. The decline was led by financials (-1.8%) and real estate (-1.8%), though energy stocks provided some support, rising 1.1% alongside higher oil prices.
Copper – Weekly Chart
Copper prices are now attempting to break out from the wedge pattern we’ve been monitoring. Watch for further upside movement and strength in the sector, which could signal continued momentum.
Gold – Daily Chart
The price action in gold is setting up just below the upper trendline of the continuation pattern we’ve highlighted, right below all-time highs. Monitor closely for any potential breakout signals, confirmation, and strength in the sector. This could indicate the next upward move.
Silver – Daily Chart
The price action in silver is pushing up against the underside of horizontal resistance and the upper trendline of its consolidation area. Monitor closely for any potential breakout signals that could confirm continued upward momentum.
Bitcoin – Weekly Chart
Bitcoin continues consolidating in its sideways trading range, positioned across its 50-day or 10-week moving average.
Friday’s market action highlighted investor concerns about rising bond yields and their impact on equity valuations, particularly in growth and small-cap stocks. The S&P 500, Nasdaq, and Dow all broke below key moving averages, signaling potential further downside if these levels aren’t reclaimed. Energy remained a bright spot, supported by geopolitical tensions and rising crude prices. Meanwhile, gold appears poised for a technical breakout as markets digest elevated yields and strong employment data. Key technical levels, including the 50- and 200-day moving averages, will be critical in determining the market’s future direction if other highlighted key levels don’t hold.
“When you let go of the need to know what will happen next, you free yourself to see what is actually happening.” – Mark Douglas
Now, onto the daily setups.
US Daily Setups
AGX – Argan, Inc.
Argan is consolidating just below its all-time high, with an increase in volume over the last four days. Monitor closely for any breakout signals that could confirm upward momentum.
LINK TO CHART – https://schrts.co/UpDkDrpy
CEG – Constellation Energy Corp.
Constellation Energy is attempting to break out with robust volume. Monitor closely to see if this signals the continuation of the uptrend.
LINK TO CHART – https://schrts.co/qhTYZEFS
CRS – Carpenter Tech Corp.
Carpenter Tech is consolidating just below its all-time high, suggesting potential strength. Monitor closely for signs of a breakout to confirm upward momentum.
LINK TO CHART – https://schrts.co/kZUVjgaN
GDX – VanEck Vectors Gold Miners ETF
With gold price action attempting to break out, it’s worth keeping both the VanEck Vectors Gold Miners ETF and VanEck Vectors Junior Gold Miners ETF on the radar. Monitor these ETFs for signs of breakout and continued upward momentum in the precious metals sector.
LINK TO CHART – https://schrts.co/QQuBGpMP
GDXJ – VanEck Vectors Junior Gold Miners ETF
LINK TO CHART – https://schrts.co/vJqIitFp
GLD – SPDR Gold Shares
The SPDR Gold Shares ETF is attempting to break out from its consolidation/continuation pattern, as the ETF tracks the price of gold. Monitor closely for signs of sustained upward momentum and confirmation of the breakout.
LINK TO CHART – https://schrts.co/nIBKkqhw
NBIS – Nebius Group N.V.
Nebius experienced robust price action on Friday, while the overall market was weak. Monitor closely to see if price action can start breaking out above the significant horizontal resistance line, which could signal further upward momentum.
LINK TO CHART – https://schrts.co/YYVIgVRQ
ONON – On Holding AG
On Holding is consolidating as a potential continuation pattern, with the PPO momentum indicator setting up at the zero line. Monitor closely for any breakout signals that could confirm upward momentum.
LINK TO CHART – https://schrts.co/ewnvtkCU
SNAP – Snap Inc.
Keep Snap on your watchlist and monitor closely to see if it starts to break out from its current trading range. Look for signs of sustained upward momentum if a breakout occurs.
LINK TO CHART – https://schrts.co/NXMRxnvP
VITL – Vital Farms Inc.
Vital Farms continues to set up above the upper trendline of a significant multi-month consolidation pattern. Monitor closely for any signs of a breakout to confirm continued upward momentum.
LINK TO CHART – https://schrts.co/BbZhWhMA
VST – Vistra Energy Corp.
Vistra Energy appears to be setting up just below its 52-week high and all-time high, suggesting potential strength. Monitor closely for any breakout signals to confirm upward momentum.
LINK TO CHART – https://schrts.co/tIWCFTjc
Canadian Daily Setups
AGI.TO – Alamos Gold Inc.
Alamos Gold is working its way toward the apex of a significant multi-month consolidation/continuation pattern. Monitor closely for any potential breakout signals that could confirm further upward momentum.
LINK TO CHART – https://schrts.co/kSvUwjTg
ALA.TO – AltaGas Ltd.
AltaGas appears to be setting up on the right side of a multi-month consolidation area, indicating the potential for a breakout if momentum builds. Monitor closely for signs of upward movement.
LINK TO CHART – https://schrts.co/DZBKCyYX
ALS.TO – Altius Minerals Corp.
Altius Minerals is attempting a 52-week high breakout from the right side of a multi-month base. Monitor closely for signs of a sustained breakout and upward momentum.
LINK TO CHART – https://schrts.co/qpVjqymN
DEFI.NE – DeFi Technologies Inc.
DeFi Technologies appears to be consolidating toward the apex of a consolidation area. Monitor the chart pattern closely for price action to reveal the direction of the breakout.
LINK TO CHART – https://schrts.co/iQQbjEnf
NTR.TO – Nutrien Ltd.
Nutrien appears to be setting up just below a significant horizontal resistance line that spans multiple years. This is occurring while the monthly PPO momentum indicator attempts to signal a bullish cross. This technical signal on the monthly PPO has only occurred a handful of times over the last 20 years on this chart. Monitor closely for any potential breakout signals that could confirm upward momentum.
LINK TO CHART – https://schrts.co/AHbXrrPn
OGN.V – Orogen Royalties Inc.
Orogen Royalties is attempting to move higher from a rounded bottom pattern. Monitor closely for signs of continued upward momentum and potential breakout confirmation.
LINK TO CHART – https://schrts.co/hGZdsAPB
To conclude our report, we thank you for your engagement and insights. Your feedback is valuable, and we encourage you to share your recommendations. Stay attentive to the Daily Setups, the Workspace, and the Watchlists for emerging opportunities. Additionally, be sure to explore the PDFs of Friday’s scan results provided below. Until next time, happy trading!
US Scanner Results
(Stocks are sorted to highlight those with the strongest momentum at the time of the scan)
Click on the CandleGlance chart to view it in full size. Find a chart that matches your criteria or interests. You can easily save it to your watchlist on StockCharts.com for further analysis and tracking or copy and paste the ticker list into your chart provider.
EXPORT – US Watchlist Scan – 2025-01-12
DATS, INTZ, CGBS, WBA, MVST, CEG, AMPX, AXGN, SMTK, BAER, ITCI, STI, STIM, IVDA, OPFI, LFVN, HSAI, SPCB, ETON, SERV, BSGM, CDZI, PPIH, RXT, SNX, DAL, ECX, PENG, TLSI, NBIS, PLUG, DXPE, HAFN, MURA, DHT, INSW, CMTL, ANF, CEE, INTA, ARIS, SN, FNMA, PRM, LPSN, TK, BG, PENN, INDO, IDR, EXEL, BBAR, BJ, USO, BKYI, GBX, CACI, EGY, VST, SNAP, CRMD, ALLT, SUPV, UAL, MBOT, FTAI, DKNG, TBBB, ARLP, TLN, ANY, GIL, AROC, TTEK, APD, RSSS, ADM, TGT, AGX, VIST, LB, PAM, SRAD, RNGR, EOG, CTRA, RYAN, DJT, FMCC, PHX, CF, LNTH, ONON, TPL, LRN, MP, ODD, VITL, CVX, DRD, HES, XPOF, BROS, JETS, CLMT, RRC, MDGL, WAT, IMMR, AAON, LOMA, GGAL, KTOS, VIK, IESC, JFIN, HROW, ZS, GAP, RH, AEP, FINV, CRK, JILL, WMT, DLTR, TBCH, KNTK, TEO, WWW, AR, WSM, XERS, XOP, AS, YPF, IRS, CRS, CLS, AEM, SKX, ARGX, VEON, CRDO, YEXT, VRNS, COST, DOCU, PR, CDW, SRV, GLD, PTEN, IBIT, AGI, TDOC, CRESY, SNOW, DB, AMRK, NRG, EE, META, CRGY, FBTC, GBTC, PAA, KGS, NEXT, SLV, PLNT, PSN, ARGT, BMA, LUV, HD, TRGP, UI, LULU, ISRG, CEPU, GMED, TSM, HQY, KGC, SPHR, LHX, PODD, AJG, CODA, PCF, PRCT, SYK, BURL, LFST, OR, NUKZ, TSCO, RIO, ACI, IAG, GH, CHWY, WIT, FORM, ARMK, CLM, HPE, SDA, JNPR, OXY, VEEV, CRC, PLSE, HYB, GEV, BA, BWXT, LTH, VTS, GPOR, BOXX, ERJ, GPI, SKYW, DMLP, CIEN, LNG
Canadian Scanner Results
(Stocks are sorted to highlight those with the strongest momentum at the time of the scan)
Click on the CandleGlance chart to view it in full size. Find a chart that matches your criteria or interests. You can easily save it to your watchlist on StockCharts.com for further analysis and tracking or copy and paste the ticker list into your chart provider.
EXPORT – Canadian Scanner Results – 2025-01-12
GPV.V, NXT.CA, WUC.CA, ATZ.TO, HCU.V, HODL.CA, CKG.V, NURS.V, BTQ.NE, BOIL.CA, DEFI.NE, RCK.V, MFI.TO, VERS.NE, DDD.V, OGN.V, ALDE.V, REG.V, VLE.TO, URC.TO, LIFT.CA, LIFT.V, ORA.TO, AMRQ.V, KEI.TO, GTE.TO, KSI.TO, OVV.TO, NGEN.V, GTWO.TO, IFOS.V, ALS.TO, GRA.TO, GIL.TO, GGD.TO, LUG.TO, SU.TO, BB.TO, YGR.TO, IPCO.TO, CGG.TO, AIM.TO, PSD.TO, HAI.TO, IMO.TO, WRN.TO, OBE.TO, GASX.V, GFR.TO, IFA.TO, BIR.TO, PSI.TO, TD.TO, PD.TO, ESI.TO, SGY.TO, HWX.TO, WMT.NE, NGEX.TO, NCI.V, LRA.V, EQX.TO, EQX.V, ALA.TO, ACX.TO, PNG.V, VROY.V, META.NE, MVRS.NE, NTR.TO, TIH.TO, QBR/B.TO, CLS.TO, MAU.V, VHI.TO, GLXY.TO, CFW.TO, CNQ.TO, SDE.TO, ARTG.V, CJ.TO, PHX.TO, CVE.TO, VZLA.TO, WCP.TO, TVE.TO, WCN.TO, PSLV.TO, HME.V, FORA.TO, SFC.TO, RBY.TO, SOBO.TO, TNZ.TO, CAS.TO, VET.TO, ATH.TO, FNV.TO, BK.TO, BNE.TO, QIPT.TO, BA.NE, TOT.TO, FRU.TO, AGI.TO, GFL.TO, PSU/U.TO
