Saturday, January 31, 2026

Decoding ETF Signals: Technical Breakdown for Key Funds

ETF Technical Analysis Update: January 31, 2026

Disclaimer: The analyses provided in this blog are for informational purposes only and do not constitute financial advice. I am not a professional financial advisor. Always conduct your own research and consult with a qualified professional before making investment decisions.

Overall Market Insights

As we close out January 2026, the technical analysis of various ETFs reveals a predominantly bullish outlook for major market indices over the medium to long term. Indicators such as the Moving Average Convergence Divergence (MACD) showing positive crossovers, Relative Strength Index (RSI) levels above 50 indicating momentum, and Simple Moving Average (SMA) alignments suggest upward trends in broad market ETFs like DIA, SPY, and QQQ. However, sector-specific ETFs show mixed signals, with energy-related ones like XOP displaying strength in shorter horizons but neutrality longer term, potentially influenced by Parabolic SAR trends and Money Flow Index (MFI) readings.

Bullish highlights include strong buy consensus for DIA across 15-30 day periods, driven by consistent Directional Movement Index (DMI) positives and Ultimate Oscillator uptrends. Bearish signals are limited, with XRT showing a weak sell in the 5-day horizon, possibly due to Stochastic Momentum Indicator overbought conditions.

Comparisons to Prior Data

Compared to the January 30 analysis, signals remain largely stable with minor upgrades. For instance, SPY has strengthened its 25-day signal to a strong BUY from neutral, reflecting improved Time Series Forecast projections. QQQ maintains strong buys but added a weak buy in the 5-day period. On the bearish side, XLF's 20-day sell from previous days has persisted but not intensified. Overall, the market sentiment has tilted slightly more bullish week-over-week, with fewer neutral signals in key indices compared to mid-January data.

Consensus Signal Table

ETF5 Days10 Days15 Days20 Days25 Days30 Days
BNDbuybuy
DIABUYBUYBUYBUY
GLD
IJHbuyBUYBUYbuy
IWMbuybuy
JNKbuybuy
KBEBUYBUYBUY
QQQbuyBUYBUYBUY
SPYbuybuyBUY
TQQQ
UPROBUYBUYbuy
URTY
XBIBUYbuybuy
XES
XHBbuybuybuybuy
XHSBUY
XLB
XLE
XLFsell
XLI
XLKBUY
XLP
XLREBUY
XLUBUY
XLVbuybuybuy
XLY
XME
XOPbuybuyBUYbuybuy
XRTsellbuyBUY

Strong Consensus Trends Analysis

For ETFs showing strong BUY signals, we've reviewed recent articles to validate or challenge these calls based on external forecasts.

DIA (Strong BUY in 15-30 days)

QQQ (Strong BUY in 15,20,30 days)

KBE (Strong BUY in 20-30 days)

XOP (Strong BUY in 15 days)

SPY (Strong BUY in 25 days)

What I Own

Full disclosure, as of Jan 30th, I own KBE, IJH, XLY and XOP.

Posted by Joe McVerry (@usacoder) on X on January 31, 2026.

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