Trading System Signals on 01-22-2026

The intra-day price action in January for the stock indexes has been mostly sloppy. Through yesterday's trade we see the Nasdaq 100 index $NDX.X, up 268.5 points up on the year, while down -332.75 points during the day session with the overnight session gains +601.25. Can the stock indexes continue to go up overall while the net gains intra-day are down? In markets, anything is possible, but realistically this divergence should correct itself with the day session trend turning higher, or the market trending lower.

It seems like the market "ought" to correct and move lower. As traders, we don't care and are ready to trade it in either direction since it could also explode higher. While the market "gets its bearings" for its next move, it can be very sloppy as we have seen.

With Silver hitting $100 this morning, the divergence between a strong trend higher in the metals with a narrower range bound pattern forming in the major stock indexes has been both strange and interesting.

The early trade on Friday shows the potential for one of those strong intra-day trends higher in the stock indexes. Some of the best gains lately have been when the market opens near the previous day's close and then rallies. The market has spent all week getting back to last Friday's close. If stock indexes are able to post a strong gain today, it will be a major reversal.

We are due for a positive day and Friday's have been some of our best bounce back days.

Yesterday, the portfolios were down across the board. V-Reversal NQ came off of an equity peak and had two losses on the day.

The hypothetical trading system signals for 01-22-2026:

Diversified Portfolio 57 (NQ Only) = -$8,055

Stock Index Portfolio 37 = -$8,055

Stock Index Portfolio 18 = -$8,055

Two System Portfolio NQ = -$3,780

Silver Portfolio = -$3,875

50K Portfolio = -$791 (without Gold and Silver)

As we trade the last day of this holiday shortened week and a very lackluster month so far, there is an anticipation of institutional accumulation or distribution. The bullish case could be based on the technical response to bearish news. The fact that nothing cand seem to take this market down for very long and how the market continues to move sideways, generating a time correction without much of a price correction, could signal another major move higher.

The FOMC meeting is next Wednesday and the timing of this cycle without any major moves so far this year, and the likelihood that there won't be any surprises associated with the FOMC, could generate a trend ahead of the news. As of 11 am EST today, the Nadsaq 100 index is only 500 points away from all-time highs.