The TML Report – January 20, 2026 – The NASDAQ Turns Lower

Market Overview

The NASDAQ clearly picked a direction this afternoon, and the S&P 500 quickly followed suit. The Dow held up a bit better than the NASDAQ and S&P 500 on a relative basis but still closed poorly. Only the Russell 2000 showed any relative strength today.

However, despite the less-than-stellar action on the major indexes this afternoon, the market’s leadership held up noticeably better. As the indexes would suggest, large-cap names came under pressure today, while small to mid-cap names were where the relative strength was.

It will be interesting to see if today’s weakness turns out to be just another one-day wonder, a shake below the 50-day SMA for the NASDAQ and S&P 500, or if it will evolve into something more drawn-out and serious. Rather than make a call here, our best bet is to wait and see what happens over the next few days, then act accordingly.

Depending on how much cushion you have for the year and how exposed you are, you may or want to tighten stops on your current positions. Discretion is the better part of valor until proven otherwise.

Ultimately, I try to wait for leaders to stop me out based on the individual plan I have for each stock I own, rather than make an all-or-none decision based on the major indexes. At the end of the day, all that matters is that risk management is your focus.

Indexes

QQQ

The NASDAQ finally picked a direction today, which was lower. The tech-heavy index sold off on heavier volume, closed well below its 50-day SMA, and near its lows for the day.

SPY

The S&P 500 has been exhibiting more strength than the NASDAQ recently. However, today it was quick to follow suit and sell off as well, closing below its 50-day SMA and near its lows for the day.

IWM

The Russell 2000 continues to be the clear leader among the four major indexes. Today, the small-cap index broke below its steep rising bottoms line, but managed to bounce at its 10-day SMA.

DIA

The Dow sold off with the NASDAQ and S&P 500 today. However, it held up much better on a relative basis. The industrial index still managed to finish well above its 50-day SMA, unlike the other two.

Focus List

AMD

Given the general weakness in larger cap names, AMD held up extremely well today for its size. It easily held above key support and just a tad below a consolidation pivot where it is setting up constructively.

TSEM

TSEM has been moving sideways for a few weeks now, showing tight, constructive price action, and it appears to be setting up for another breakout attempt, which could lead to a sharp move to the upsdie.

ALAB

ALAB is an extremely volatile name, so being patient with your entry is key. On one hand, if the volume is there, strength can be used to buy through the $182.53 pivot point with a sell stop at $176. On the other hand, constructive weakness at key support above its KMAs works as well.

EOSE

EOSE can swing around wildly on a daily basis, which makes buying constructive weakness near key support the ideal tactic for managing risk. However, we don't always get what we wish for, which means we should be ready for either scenario: strength or weakness. The most important thing is that whichever entry tactic we choose, tight logical cell stops are priority.

IREN

IREN has pushed powerfully up the right side of its base above its prior gap down, where it is now finding support. There isn't a rush to buy here. However, entering versus the high of the gap with a stop at the low of the gap isn't a bad way to try and sneak in, assuming things shape up constructively over the next few days.

APLD

APLD continued to exhibit relative strength and hold up above key support above the confluence of its $34.86 pivot and 10-day SMA, despite closing lower. If things manage to shape up in a healthy, constructive manner over the next few days, key levels marked in the chart below can be used for entering on strength or weakness with tight, logical sell stops.

BE

BE blasted out of a double bottom base on heavy volume just eight sessions ago. It has since broken out again through its prior all-time high. Now it's a matter of seeing how this breakout develops to try and find an entry with optimal risk reward, Assuming things shape up constructively over the next few days.

GLW

GLW has been consolidating in a healthy, constructive manner since the beginning of October 2025, and looks like it's setting up to break out and move higher.

VIAV

VIAV has been moving sideways in a tight range since early November, which is considered healthy, constructive action. It now appears to be setting up for a breakout to new all-time highs and potential move higher.

CLS

Similarly to VIAV above, CLS has been moving sideways in a tight range since early November, which is considered healthy, constructive action. It now appears to be setting up for a breakout to new all-time highs and potential move higher.