As the holiday approaches, US stock market trading cools down. How will the S&P 500 respond?

2026-01-16 10:52:07

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As the holiday approaches, trading volume in the US stock market has significantly shrunk, and market trading sentiment appears particularly sparse. On Monday, trading volume dropped nearly 40% compared to the average over the past 20 trading days, and this situation is unlikely to reverse on Tuesday.

The S&P 500 index opened flat today, with gains and losses in the technology sector. Despite the light trading, Craig Johnson, Chief Market Technician at Piper Sandler & Co., noted that market sentiment remains surprisingly resilient. In his latest analysis, he stated, “Even though holiday shortened trading days have compressed activity, the market has maintained a steady upward pace.”

From a technical perspective, the potential of the US stock market should not be underestimated. Johnson emphasized that market breadth continues to improve, which is a positive signal. Trend indicators remain constructive, indicating that upward momentum is still in place. Notably, volatility has broken through a key support level, reflecting the market's resilience.

Overall, despite low trading volume due to the holiday, the US stock market's performance in terms of breadth and technical indicators still shows strong confidence, and the market maintains a relatively calm adjustment stance.

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