Day-Trading Scenarios for Jan 16, 2026

As per yesterday's plan, as soon as we broke above 49470, we took the long position.

Start of today brings a very narrow range, which means 2-way trading.

This means wait for the breakout. Don't expect runners until the range is broken. First support is 49565 then 49511. Resistance starts at 49711.

Sentiment remains choppy due to ongoing concerns over potential interest rate caps on credit cards and mixed bond yield movements, which weighed on some financial stocks.

The outlook is cautiously optimistic, supported by a resilient U.S. economy but tempered by trade tensions and monetary policy uncertainty. Positive drivers include a strong labor market (jobless claims at 198,000 and continuing claims at 1.884 million, beating expectations) and a rebound in chip stocks following TSMC's strong quarterly results, which could spill over to Dow components like Intel and IBM. Earnings from regional banks like PNC, Regions Financial, and M&T Bank today will provide insights into lending trends and deposit costs, potentially boosting financials if results exceed forecasts (e.g., PNC's projected 11% revenue growth by year-end).

Upcoming data like December industrial production (due at 9:15 AM EST) and Fed speeches from officials could influence rate expectations—markets now see no cut at the January 28 meeting and only a 25bp reduction by July, amid pushback on political pressures. Headwinds include proposed 25% tariffs on semiconductors and broader trade risks with China, which may pressure export-heavy industrials in the Dow. The White House's potential emergency energy auction for big tech could indirectly support infrastructure-related stocks, but high valuations leave room for pullbacks on disappointments. Expect YM to trade in a 49,600–49,800 range early, with upside potential toward 50,000 if tech momentum holds.

Industrial Production

9:15 AM ET

Housing Market Index

10:00 AM ET

Susan Collins Speaks

10:50 AM ET

Michelle Bowman Speaks

11:00 AM ET

Philip Jefferson Speaks

3:30 PM ET

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DATE: 1/16/2026

TIME: 9:01 AM

HIGH: 49792

LOW: 49253

CLOSE: 49639

PIVOT: 49561

SUPPORT: 49511

RESISTANCE: 50000

SWING MAGNITUDE: 229

TIME OF COMMENT: 9:01 AM

COMMENT: For today's real-time trading calls enjoy a One Week Trial at https://www.eminiace.com/services