Tech Tightens As Breadth Broadens 📈 The Daily Chart Report

By Patrick Dunuwila

January 6, 2026

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Today’s Summary

Tuesday, January 6, 2026

Indices: Russell 2000 +1.37% | Dow +0.99% | Nasdaq +0.94% | S&P 500 +0.62%

Sectors: 9 of the 11 sectors closed higher. Materials led, gaining +1.98%. Energy lagged, dropping -2.67%.

Commodities: Crude Oil is down -2.25% to $57.01 per barrel. Gold is up +1.26% to $4,507 per oz.

Currencies: The US Dollar Index rose +0.24% to $98.59.

Crypto: Bitcoin is currently down -0.72% to $93,194. Ethereum is up +1.56% at $3,275.

Volatility: The Volatility Index fell -1.14% to 14.74.

Interest Rates: The US 10-year Treasury yield rose to 4.163%.

Here are the best charts, articles, and ideas shared on the web today!

Chart of the Day

The range is compressing in $XLK Tech Sector Index

The most recent higher low is right at the YTD low, under there is a good place for a stop. No position yet for me but keeping a close eye on it.

chart from @marketsurge

Top 10 components = $NVDA $AAPL $MSFT $AVGO $PLTR $AMD… pic.twitter.com/FyFXr85qJE
— Brian Shannon, CMT (@alphatrends) January 6, 2026

🏆 Today's Chart of the Day was shared by Brian Shannon (@alphatrends).

The Technology sector ($XLK) is approaching a critical decision as price tightens toward the apex of a multi-month coil.
With software stocks making up a significant share of the sector, rotation into this beaten down industry would be constructive for $QQQ, which was the only major index unable to register a new all-time high in December.
At the same time, Tech's contraction has coincided with improving market breadth, highlighted by fresh record highs in the Equal Weight S&P 500 ($RSP) today. This healthy backdrop supports an upside resolution to the prolonged consolidation in $XLK.

The Takeaway: The combination of expanding breadth and a coiled Tech sector points to a healthy rotation of leadership and sets the stage for Tech to reassert its dominance.

Quote of the Day

“Successful investing is having
everyone agree with you... later."

- Jim Grant

Top Tweets

2026 is on the board with the first new high of the year. 🍾🥂 pic.twitter.com/du95eq3HCM
— Ryan Detrick, CMT (@RyanDetrick) January 6, 2026

The Santa Claus Rally ended down 0.11%. In the 6 prior cases where the rally was almost positive (−1% to 0%), the S&P 500 gained 20%+ in 3 years. This is a seasonality signal, not a standalone call. We still see 2026 as a strong year for stocks. $SPX #SP500 pic.twitter.com/ceFmL4srpa
— Bluekurtic Market Insights (@Bluekurtic) January 6, 2026

January's First Five Days matter more than SCR....

When the first five days are positive, the S&P 500 finishes higher 85% of the time, with a 15.9% median return. Negative January starts drop that to 2.6%, with only 44% of years finishing higher.

That spread is why January's… pic.twitter.com/agmMHJ3t1w
— Grant Hawkridge (@granthawkridge) January 5, 2026

It's beautiful, and straight out of the textbook. $RSP pic.twitter.com/4uCd1A0zvM
— Steve Deppe, CMT (@SJD10304) January 6, 2026

$MAGS vs S&P 500 care to argue about a chart? pic.twitter.com/CZEmpnU9rK
— David Nicoski CMT (@davevermilion) January 6, 2026

European financials $EUFN vs. U.S. banks $KBE making 11-year relative highs... go, go gadget! pic.twitter.com/GxtRfQaApS
— David Cox, CMT, CFA (@DavidCoxRJ) January 6, 2026

$EEM

We will see where we are in 25 days, but IMO this has big implications if it can hold... pic.twitter.com/v2Ktv0Synf
— Ian McMillan, CMT (@the_chart_life) January 6, 2026

#TNX Inflection point at the neckline and the 200-day average. pic.twitter.com/TiEv8ifHA1
— Aksel Kibar, CMT (@TechCharts) January 6, 2026

Bonds... $TLT headed lower. pic.twitter.com/C4Uxk2MeZU
— Against All Odds Research (@JasonP138) January 6, 2026

You'd think given the glorious bull market that Junk Bonds would participate

But no, they've been flat for 16 months pic.twitter.com/w7HWJG9cKa
— Aaron Jackson (@RotationReport) January 6, 2026

Rare earths & strategic metals ( $REMX ) have rebounded sharply off their lows.

REMX and Basic Materials relative strength (RSPM/RSP) tend to move together.

Basic Materials has only recently begun to outperform. pic.twitter.com/6kouCSUzGP
— Randy Dunham (@itmrandy) January 6, 2026

The Industrial Metals Index is clearing a 20-year-long base.

Big structural move ahead. pic.twitter.com/zrzUYaTaSq
— Jordan Roy-Byrne CMT, MFTA ⛏⛏ (@TheDailyGold) January 6, 2026

Just for the record, Silver and Platinum seasonality is still very favorable. A good time to invoke:
Jay’s Trading Maxim #121: When price and seasonals align, it might be a sign. @sentimentrader pic.twitter.com/owxsDwfVOj
— Jay Kaeppel (@jaykaeppel) January 6, 2026

You're all caught up now. Thanks for reading!

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Patrick Dunuwila

Editor, The Chart Report

Patrick Dunuwila is the Co-Founder and Editor of The Chart Report, a popular technical analysis newsletter read by thousands of investors worldwide every day. Patrick is a Chartered Market Technician (CMT) with over a decade of market experience. Prior to launching The Chart Report, he worked as a proprietary trader at Benchmarq Technologies in New York City. He's originally from Syracuse, NY, and currently resides in San Diego, CA.

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