Market continues on its way as bears continue to hibernate

Briefing.com Summary:

*Some upside action in the mega-cap stocks and PNC Financial has lent some early support to the futures market.

*The tape suggests that bulls have remained in control of the market action and that bears have been largely hibernating in January.

*U.S. markets will be closed Monday in observance of Martin Luther King Jr. Day.

In a week chock-full of important developments, today feels a lot less significant in comparison. That is not a bad thing heading into a three-day weekend (markets are closed Monday in observance of Martin Luther King Jr. Day).

There is some talk of a possible joint intervention by Japan and the U.S. to stem the yen’s weakness; Canada has struck a new partnership with China on energy, agri-food, and trade; the U.S. is sending more defensive and offensive capabilities to the Middle East, according to Axios; and President Trump will propose that technology companies fund new power plants, according to The Wall Street Journal.

These are interesting news items, yet none in its own right has gotten the market’s heart racing.

Currently, the S&P 500 futures are up 10 points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 116 points and are trading 0.5% above fair value, and the Dow Jones Industrial Average futures are up 14 points and are trading fractionally above fair value.

Some upside action in the mega-cap stocks, which faded as yesterday’s afternoon session unfolded, has been an early support factor along with the positive response to the earnings report and outlook from PNC Financial Services (PNC).

Investor conviction, however, has been tempered partly by the awareness that yesterday’s mega-cap advance lost its luster, by some burgeoning concerns that the broader market is overbought on a short-term basis, and by rising Treasury yields that have the 10-yr note yield again testing the 4.20% level, which has acted as stubborn resistance.

The fact that U.S. markets will be closed until Tuesday in the face of a rancorous geopolitical environment is probably also acting as a holdback provision.

Still, the bulls remain in control of the market action. They may have tempered their efforts, yet the bigger point is that the bears continue to hibernate for the most part.

The major indices are all higher for the year, with gains ranging from 1.2% to 7.8%; nine of the 11 S&P 500 sectors are higher, with gains ranging from 1.2% to 7.7%; and the Philadelphia Semiconductor Index is up 10.7% after just 10 trading sessions.

There is a LOT of green on stock monitors with a year-to-date column, and that won’t change after today.

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Originally Posted January 16, 2026 – Market continues on its way as bears continue to hibernate