Chop, chop and more chop. The market has been grinding its' way higher since the November low from last year with smaller pullbacks along the way. The market is in the final part of that move up, which should conclude sometime next week. Once it does we should see a pullback to the high 6600's on the ES, and it should be a higher lower then the November low from last year.
The pullback should finish into mid-February where we'll see a move back up start from, but it's likely to have some up's and down's until the first week of March to gather enough energy to start the massive squeeze up to 7600+ into April or May.
Meaning I'll only be looking for short lived moves up after the mid-February low, and will not be looking for a longer term position to take until the first week of March. Then I'll look to get long and stay long targeting the mid 7000's into April or May. Once the big squeeze starts no one will believe it and will just keep shorting as it goes higher and higher in a blow off rally for a crazy new high, which could even top at 7777 for the ritual... who knows?
I've been given a new FP on the SPY of 660.08, that came out on January 14th, 2026, so I'm pretty sure that's the downside low that's coming into mid-February. First though, we need to reach the 700 SPY level where there's a massive about of gamma volume that is acting like a magnet for the market. Since the ES is running a lot higher then the SPX/SPY now the current ratio between them would put the ES at 7063.50 when the SPY hits 700.00, so that's a slightly higher high then the current all time high of 7036.25, and should be hit next week. Then we should see the pullback to 660.08 over the coming 3-4 weeks, which would put the ES around 6659.86 (roughly).
So, in summary we should be on the look out for a new all time high next week that hits the 700 zone on the SPY, and that should be where the top is at and the pullback to the FP of 660.08 should follow into mid-February.
Have a great weekend.
