In the premarket this morning, stock index futures and the premarket are down, while the dollar is up and flat on Tuesday morning. So not much excitement. You can see that the tech sector has a bit more weakness than the rest of the market. Now, when we look at these premarket numbers, it’s important to remember what the average true range is for the various indexes. And if we use just one example, the average true range is currently 662. 27. And if we show up in the premarket and see that we’re trading above or below that level, then we know something is really broken in the market. Otherwise, if it’s trading below that level, we know it’s just an average day in the market. Let’s move to a couple of weekly charts, and then we’ll take a closer look at the US market, and we’ll follow that up with a look at the Canadian market. Now, over the weekend, we posted a weekly sell signal for the Nasdaq 100.

And so what’s been happening on a daily basis has finally clicked, and we’re at a weekly sell signal. We are negative for the year to 2026. Now, last week, we traded through the lower channel line, but we didn’t close below it. And finally, we closed under it on Friday. Now, of course, everyone is talking about Nasdaq’s weakness in the software sector. The software sector took off back in October, and that also helped put some slack in Canada’s tech sector, which certainly doesn’t have a big hardware or AI component to it. So we’ve seen Shopify help take down Canada’s tech sector over the past few months. Now, when money was flowing out of the tech sector, it might be going into the bond market. By Friday’s close, the weekly buy signal has returned. Now, moving on to the VIX or fear index. We can see that options traders in Chicago are still worried about the market and the higher trend for the Nasdaq. This is bearish for the stock market.

Moving on to the US market and looking at major index ETFs. We’ve got the Dow trading through the lower channel line on Friday but not closing below it, unlike the S&P 500, which is back on a sell signal. Now, right now, there’s a huge gap between the S&P 500 and the equal-weighted S&P 500, which hit a new high on Thursday, and then we basically had an insider’s day on Friday. Compare that to the Nasdaq 100 versus the equally weighted Nasdaq 100, which has been on a sell signal for a few weeks now. We also got the Next Generation Nasdaq on the second day of the sell signal, so no joy there. Put in low altitude. Now we have to see if we put in the lower part. You can see that we had a buy signal. It only lasted for a couple of days. During this period, professionals did not return to regain control. Usually, after a few days when we take a buy signal, if you don’t see the pros getting back in control, you just have to assume that the trade is going to close pretty quickly.

Looking at semiconductors, it looks like we’re putting a double top here. Looking at the financial sector, we made a new low for this move on Friday. You can see that when we got a buy signal here that only lasted a few days, during that period, the professionals didn’t come back to take control. It is not necessarily the banks that are dragging down the financial sector. It has a lot to do with broker dealers and now the insurance sector. So these banks are not pulling finance down. It has been broker dealers. Now what worked and what didn’t work on Friday. Well, utilities were the big winners. What didn’t work? Communication Services. So utilities have been running higher since last October. At the same time, we have communication services coming down, let me see if it can maintain the January low. Looking at the most active from Friday’s trading action, starting with Nvidia (NASDAQ: Nvidia dipped below the lower channel line on Friday but did not close below it. So 193.75 is still acting as major resistance for NVIDIA.

Then, looking at Ford (NYSE: ), Ford is struggling to break out above the 14.45 level here. And then looking fast. Quickly, it rose higher on Thursday morning and moved higher on Friday. Not a stock I’ve really spent much time looking at. It appears to have bottomed out at $8, found support, filled the gap back in early November, and then quickly reversed. Too fast for me. Transocean then hit a new high on Friday. No joy for Lloyds Bank. It is still on sell signal here. No joy for Intel, still on sell signal. Then we have Amazon (NASDAQ: Amazon is struggling around the $200 level. We actually closed below that on Friday, so we could be away from $200 in the next few days. And then Apple (NASDAQ: Apple fell sharply on Thursday and continued to move lower on Friday. Then one last time, looking at the snap. Snape had a quiet Friday. Inside we are right down to level 469. This is the bottom of our expected trading range on the daily chart. On the weekly charts, if we break 469, 313 will be our next downside target for Snap. Let’s wrap up this morning’s presentation, taking a look at the Canadian market and both the iShares TSX-60 and Vanguard Canada ETF bounced off the lower channel line on Friday.

So it closed Tuesday below Friday’s low. Tuesday will give us a sell signal. Within the energy sector on Friday, we had both financials and bank stocks trading below the lower channel line, but they did not close below it. So they’re looking a little weak here, tired, but we’re still on a buy signal going into Tuesday’s trading. An inside day for the global gold ETF, and then an inside day for tech stocks on Friday. Now, what worked on Friday, the content, which of course includes the gold stock, was the winner. Communications services were only in the red by a third of a percent, so no big deal there. In the material sector it seems, Friday was an inside day. The telecom sector looks like this. It pulled back a bit on Friday. Our worries here seem to be stuck at the 162.50 level. From this place we returned in November. If we go and look at the weekly chart, you can see that in the fall of 2024, before that, we were at the 168.75 level, and so it’s definitely possible that the upside is our next target on the weekly chart.

Looking at the most active TSX, Enbridge had a big day on Friday, up 3.7 79%. No joy for Telus, another day of sell signals there. An inside day for Manulife on Friday, and then Allied Properties, which fell lower on Wednesday, continued to move lower on Thursday. Friday was an inside day for Cenovus Energy. And so you can tell that Friday was a very quiet day when you’ve had all these days inside. B2Gold is having an inside day, struggling to break above 7.81. And this is a lower high that we put on Wednesday. We will have to see if it keeps us under control or if we are able to break out above the 7.81 level. Barrick has been trading in the channel for the past few days. So on Tuesday, we’re looking for a close above $65. 49 to give us a buy signal. Indoor day for the bike on Friday. And then we have Royal Bank, the second day of a sell signal there. Had trouble getting above 237. 50. If we can go back and pull out the recent high, 250 will definitely come in handy. But the high on Wednesday was actually lower than the high we saw in late December.

Well, folks, that’s all for this morning’s presentation. So far, it looks like we’re going to see a bit of a sell-off on Tuesday morning. Have a great day. The next time you hear my voice is Wednesday morning.