The TML Report February 3, 2026 – NASDAQ Loses Key Support

Market Overview

Small-cap names were the clear leaders today. The Russell 2000 briefly dipped below its 21-day SMA but ultimately closed above it, in the black, and at the upper end of its range for the day, which is considered bullish.

Conversely, the NASDAQ cracked lower and barely managed to hold its rising bottoms line and 65-EMA this afternoon. The S&P sold off with the NASDAQ, but closed in much better shape inasmuch as it finished above its 50-day SMA and noticeably further off its lows than the tech-heavy index.

The Dow held up much better than the S&P and NASDAQ. The Industrial Index closed above all of its key moving averages and is only slightly below its prior all-time high.

So far, most leading stocks have held up well as earnings season continues, despite the relative weakness in the NASDAQ.

The question on everyone’s mind now is will the NASDAQ roll over and ultimately pull everything down with it? Or will it ultimately confirm the all-time highs in the other three major indexes, boosted by an increasingly positive earnings season?

Remember, our job isn’t to predict what’s going to happen, but wait to see what actually happens and then react accordingly. So, update your lists, set your alerts, and wait patiently for your ideal setup.

Indexes

QQQ

The NASDAQ is just one down day away from breaking below the rising bottoms line, which has the potential to be the beginning of a longer correction.

SPY

The S&P 500 sold off of the NASDAQ today, but managed to hold above its 50-day moving average and close about mid-range in better shape than the tech-heavy index.

IWM

Small-cap shares led the day as the Russell 2000 was the only major index to finish the session in the black.

DIA

The Dow held up extremely well on a relative basis today, shaking out just slightly below its 21-day SMA and closing back above all of its key moving averages, just slightly below its prior all-time high.

Focus List

SKYT

Watching SKYT for a breakout above its declining tops line. and 10-day SMA.

APLD

APLD has pulled back constructively to key support at the confluence of its prior pivot and 21-day SMA. This is an ideal area to look for an entry with a tight logical sell stop.

IREN

IREN has pulled back constructively to key support at the confluence of its prior pivot and 21-day SMA. This is an ideal area to look for an entry with a tight logical sell stop.

Q

Q has formed a constructive-looking 'high-handle' area after its failed breakout attempt on January 22nd, and looks like it's setting up for another try.

ONDS

Due to the extremely volatile nature of ONDS, your best bet for managing risk is buying versus its 50-day moving average with a reasonably tight sell stop.

FTAI

Watching FTAI for constructive weakness a t the open as it attempts to break out of its current bull flag pattern.

ATRO

Watching ATRO for constructive weakness at the open as it attempts to break out of its current bull flag pattern.

STRL

watching for STRL to break out and get directional above its short-term moving averages. A little upside volume would be nice.

PACS

Watching the confluence of PACS' prior high and 50-day moving average for a potential entry area.

INDV

Watching INDV for a breakout above key resistance marked on the chart below.