Bulkowski's Blog

As of 01/02/2026

Indus: 48,382 +319.10 +0.7%

Trans: 17,535 +178.23 +1.0%

Utils: 1,078 +9.71 +0.9%

Nasdaq: 23,236 -6.36 0.0%

S&P 500: 6,858 +12.97 +0.2%

YTD

+0.7%

+1.0%

+0.9%

0.0%

+0.2%

Targets Overview: 01/01/2026

46,800 or 49,500 by 01/15/2026

16,800 or 18,400 by 01/15/2026

1,040 or 1,100 by 01/15/2026

22,400 or 24,500 by 01/15/2026

6,700 or 7,250 by 01/15/2026

Chart Pattern Indicator:

on 12/26/25

As of 01/02/2026

Indus: 48,382 +319.10 +0.7%

Trans: 17,535 +178.23 +1.0%

Utils: 1,078 +9.71 +0.9%

Nasdaq: 23,236 -6.36 0.0%

S&P 500: 6,858 +12.97 +0.2%

YTD

+0.7%

+1.0%

+0.9%

0.0%

+0.2%

Targets Overview: 01/01/2026

46,800 or 49,500 by 01/15/2026

16,800 or 18,400 by 01/15/2026

1,040 or 1,100 by 01/15/2026

22,400 or 24,500 by 01/15/2026

6,700 or 7,250 by 01/15/2026

Chart Pattern Indicator:

on 12/26/25

Recent Headlines

Monday 1/5/26. 2026 Market Forecast
Friday 1/2/26. New Patternz Released
Thursday 1/1/26. A New Year! Market Holiday
Wednesday 12/31/25. A Look at the Chart Pattern Indicator (CPI)
Tuesday 12/30/25. Slider Trading Quiz! Smith International: SII
Monday 12/29/25. Market Monday: The Week Ahead

Picture of 'Invest for two-comma wealth' book.

Older Headlines

My Prediction

Here's the link to the 2026 market forecast, presented in slider format.

A Brief Look Back

The following is a brief review of how the markets performed over time. The numbers refer to the close-to-close move in the Dow industrials.

Monday: Up 227.79 points.

Tuesday: Up 79.73 points.

Wednesday: Up 288.75 points.

Friday: Down 20.19 points.

Monday: Down 249.04 points.

For the Week...

The Dow industrials were down 71.6 points or 0.1%.

The Nasdaq composite was down 65.63 points or 0.3%.

The S&P 500 index was up 11 points or 0.2%.

Year to Date...

Dow Industrials

Nasdaq

S&P 500

Options Expiration

No options expire this week.

Swing Traders: Pivot Points

The following is based on an SFO article in December 2004 by John Seekinger, titled, "Take a two-dimensional approach." He offers these tips.

Index	S2	S1	Pivot	R1	R2
Dow Industrials (^DJI): Daily	47,826	47,945	48,170	48,288	48,513
Weekly	47,765	47,914	48,348	48,497	48,931
Monthly	44,907	46,485	47,686	49,264	50,465
S&P500 (^GSPC): Daily	6,807	6,826	6,864	6,883	6,921
Weekly	6,792	6,819	6,882	6,909	6,972
Monthly	6,492	6,669	6,807	6,984	7,122
Nasdaq (^IXIC): Daily	23,101	23,171	23,308	23,379	23,516
Weekly	23,121	23,182	23,423	23,484	23,726
Monthly	21,916	22,579	23,141	23,805	24,367

Seekinger doesn't look at the range of S2 to R2 as support and resistance levels. Rather, he considers them oversold (S) and overbought (R) areas.
S2 to R2 range of values across daily, weekly, and monthly periods: If two values are close together then they lend more significance to the area.
If the market trends on day 1, the odds rise tremendously that the market will be range bound between daily S1 and daily R1 the next day.
In a quiet market when traders are waiting for an important earnings announcement or economic report, look for daily R1 and S1 levels to hold and for the market to return to the daily pivot.
A move outside of daily R1 or S1 usually does not mean a breakout.
The odds suggest that the entire week's price action will remain between weekly R2 and S2.
Avoid going long when the market moves above weekly R2 (it's overbought) and avoid going short when price moves below weekly S2 (oversold).
Consider going short at weekly R1 or long at weekly S1 with a profit objective of the weekly pivot.
Consider going long at weekly S2 or short at weekly R2 with a profit objective of weekly S1 or R1, respectively.

Here are the formulas:

Pivot point: P = (H + L + C)/3

First resistance level: R1 = (2 * P) - L

First support level: S1 = (2 * P) - H)

Second resistance level: R2 = P + (R1 - S1)

Second support level: S2 = P - (R1 - S1)

H = high price , L=low price, C=closing price

Earnings, Chart Patterns & Industries

Earnings season will be starting in about 12 days.

Here's a symbol list of 2 chart and candlestick patterns (13 "investment grade" candle patterns) found in today's securities using my version of Patternz: RRC, UNG. Click this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

The below industries were the best (rank 1) or worst performing of those I follow.

This Week	Last Week
1. Telecom. Equipment	1. Telecom. Equipment
2. Semiconductor Cap Equip.	2. Semiconductor Cap Equip.
3. Metals and Mining (Div.)	3. Metals and Mining (Div.)
4. Apparel	4. Apparel
5. Semiconductor	5. Semiconductor
6. Drug	6. Drug
7. Biotechnology	7. Biotechnology
8. Oilfield Svcs/Equipment	8. Oilfield Svcs/Equipment
9. Machinery	9. Machinery
10. Air Transport	10. Air Transport
Best Performing Above	Worst Performing Below
50. Advertising	50. Advertising
51. E-Commerce	51. E-Commerce
52. IT Services	52. IT Services
53. Toiletries/Cosmetics	53. Toiletries/Cosmetics
54. Computer Software and Svcs	54. Computer Software and Svcs
55. Information Services	55. Information Services
56. Chemical (Basic)	56. Chemical (Basic)
57. Household Products	57. Household Products
58. Short ETFs	58. Short ETFs
59. Investment Co. (Domestic)	59. Investment Co. (Domestic)
60. Human Resources	60. Human Resources

-- Thomas Bulkowski, author: Invest for Two-Comma Wealth and the novel (fiction), Orb Foresight (#Ad)

Friday 1/2/26. Patternz

I released a new version of Patternz (version 8.0.0.7). It fixed a crash that will only happen in rare setups using weird data.

Wednesday 12/31/25. A Look at the Chart Pattern Indicator (CPI)

Picture of the chart pattern indicator

This is a picture of the chart pattern indicator on the daily scale. The indicator is the line chart below a chart of the S&P 500 composite.

I highlighted bearish divergence last week. It's baaack this week, too.

I show that divergence by using two diverging violet lines. The CPI has been trending lower since late November even as the index has climbed over the same period.

The current reading of the CPI is 45.1, which is neutral (between 35 and 65). Because this week and the prior week were holiday-shortened weeks, I'm not going to suggest a continued downtrend in the CPI nor a reversal of the uptrend in the index.

$ $ $

Here's a symbol list of 91 chart and candlestick patterns (13 "investment grade" candle patterns) found in today's securities using my version of Patternz: AEIS, AES, ALB, AFG, APH, AR, AMAT, AVA, BCPC, BSET, BIO, CLNE, CSGP, COTY, CW, FANG, EG, EXPD, EZPW, FAST, FMC, FORM, FNV, GME, GE, HP, JKHY, KSS, LAMR, LXU, MLM, NOV, NWL, NEE, NOVT, NVDA, OMC, OR, OUT, POR, PSTG, RRC, RCKY, RGLD, SMG, SEE, SEIC, SHW, SPSC, TDY, TER, TKR, TG, TWLO, UIS, VLO, VRSN, VRTX, WAT, WSO, WPM, WSM, IYC, FTEC, BOTZ, IHF, IGE, EWA, EWO, ECH, EEM, EWG, EWI, EZA, EWP, EWD, EWL, EWT, PXJ, XLY, XHB, UNG, VAW. Click this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

-- Thomas Bulkowski, author: Invest for Two-Comma Wealth and the novel (fiction), Orb Foresight (#Ad)

Tuesday 12/30/25. Slider Trading Quiz!

The Dow dropped by -0.5% or -249.04 points. Since 10/01/1928 the Dow made 820 similar moves on a percentage basis. After those moves, the next day's...

Average gain was 0.7% on 416 occasions.

Average loss was -0.8% on 404 occasions.

Expect the Dow to close higher 50.7% of the time.

Weekly, since inception on 6/14/2011:

The prediction of the Dow closing higher has been right 325/593 or 54.8% of the time.

The prediction of the Dow closing lower has been right 62/127 or 48.8% of the time.

$ $ $

I show another slider trading quiz featuring Smith International: SII stock.

$ $ $

Here's a symbol list of 89 chart and candlestick patterns (13 "investment grade" candle patterns) found in today's securities using my version of Patternz: ABT, ACN, AES, ALKS, ALGT, AFG, APH, APOG, AMAT, ADM, BCPC, BSET, BBY, BOOT, BAH, BSX, BCO, BRKR, CBT, CLS, CDAY, CLNE, CNO, CMTL, CSGP, BOOM, EXP, EBAY, EXPD, FDS, FLEX, FMC, GME, GIS, GFS, GGG, GFF, HLIT, HP, HUN, INCY, IIIN, PODD, JKHY, KELYA, KSS, LAMR, LDOS, LXU, MLM, META, MU, MLKN, NWPX, NOVT, OMC, OUT, PEN, PNW, PLXS, RNG, SAIC, SEIC, NOW, SPSC, TXT, TG, VRTX, VC, VMC, WAT, WSO, ITA, IEV, IHI, EWH, EWY, EWD, EWT, THD, TUR, PPA, XHB, USO. Click this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

$ $ $

The following table shows where Fibonacci retrace values of the day's high-low range are plus pivot points, calculated on the Dow industrials, sorted by value. When several are near each other (small differences), the area might act as support or resistance.

-- Thomas Bulkowski, author: Invest for Two-Comma Wealth and the novel (fiction), Orb Foresight (#Ad)

© 2025 ThePatternSite.com Metric	Value	Diff	Close (within 10% of the high-low range for the day)?
Monthly S2	45,040.08
Monthly S1	46,751.01	1,710.93
Monthly Pivot	47,818.93	1,067.93
Weekly S2	47,898.15	79.21
Weekly S1	48,180.04	281.89
Daily S2	48,205.30	25.27	Yes! The Daily S2 is close to the Weekly S1.
Daily S1	48,333.62	128.31
Low	48,390.91	57.29
Close	48,461.93	71.02
Weekly Pivot	48,481.02	19.09	Yes! The Weekly Pivot is close to the Close.
61.8% Down from Intraday High	48,510.83	29.81	Yes! The 61.8% Down from Intraday High is close to the Weekly Pivot.
Daily Pivot	48,519.22	8.39	Yes! The Daily Pivot is close to the 61.8% Down from Intraday High.
50% Down from Intraday High	48,547.87	28.65	Yes! The 50% Down from Intraday High is close to the Daily Pivot.
38.2% Down from Intraday High	48,584.91	37.04
Open	48,636.63	51.71
Daily R1	48,647.54	10.91	Yes! The Daily R1 is close to the Open.
High	48,704.83	57.29
Weekly R1	48,762.91	58.08
Daily R2	48,833.14	70.23
Weekly R2	49,063.89	230.75
Monthly R1	49,529.86	465.96
Monthly R2	50,597.79	1,067.93

Recent Headlines

Older Headlines

Archives

Monday 1/5/26. 2026 Market Forecast

My Prediction

A Brief Look Back

For the Week...

Year to Date...

Options Expiration

Swing Traders: Pivot Points

Earnings, Chart Patterns & Industries

Friday 1/2/26. Patternz

Wednesday 12/31/25. A Look at the Chart Pattern Indicator (CPI)

Tuesday 12/30/25. Slider Trading Quiz!

Archives