| SPY finished the session modestly higher, closing near the upper end of the day's range after being down early.
What drove the morning weakness was rotation, not fear. According to CNBC Markets data, money came out of mega cap tech early while financials, energy, and industrials quietly picked up bids as the session went on.
Rates played a role too.
The 10 year Treasury yield pushed back above 4.10% this morning, which pressured growth names right out of the open.
That is why Nasdaq lagged early while the Dow held up better. As yields cooled into the afternoon, SPY followed with it and buyers stepped back in.
Volume told the real story.
Trading volume on SPY came in above the late December holiday average, which matters.
When the first sessions of the year attract real participation and price holds together, it usually means larger players are positioning rather than exiting.
Barron's pointed out this morning that early January flows often set the tone for the quarter, and today leaned more constructive than defensive.
Sector wise, CNBC showed strength building in financials as banks reacted positively to the rate backdrop, while energy moved higher alongside crude pushing back above recent support. Tech was mixed, but it stopped going down, and that stabilization helped SPY grind higher into the close.
This kind of session fits a familiar pattern.
Early selling to reset positioning, followed by steady buying once levels are tested. If SPY can hold above today's midpoint over the next few sessions, the market is setting a base to work higher as earnings season approaches.
Quick note while we are talking about trend structure and timing.
We are rolling out the 2026 Crypto Awakening Signal through Trend Rider!!
Trend Rider is built to flag these early trend shifts when multiple conditions line up, the same type of transition we watch in SPY when rotation replaces panic.
Bitcoin is approaching one of those moments now, and the signal is getting close.
I will share full details shortly so you can follow along as it develops.
Thanks
Ben | 
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