# A Good Year for Momentum

- Published: February 6, 2026
- Author: Laura McCue
- Category: Market Commentary
- URL: https://whiteoakfinancialmanagement.com/2026/02/06/a-good-year-for-momentum/
- Source: White Oak Financial Management, Inc., Asheville NC

> This is a client letter written on the date above, about the market as it
> stood that day. Cite the date when quoting or summarising it.

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The S&P 500 gained 0.34% last week while ending the month up 1.4%, which bodes well for this year according to the January Barometer. When the S&P 500 is positive in January, it records a gain for the full year roughly 89% of the time since 1950.

The US Dollar fell another 0.5% last week to reach its lowest levels since early 2022. The greenback is now down ~12% from last year’s highs, serving as a tailwind for commodities and international equities.

International equities are starting 2026 off hot and sit close behind US stocks in our relative strength ranks. Representative All Country ex US ETF (SYM: ACWX) is up 5.4% YTD, with emerging markets ETF proxy (SYM: EEM) having an even better start after rising 8% in January.

Silver proxy SLV gained as much as 18% last week before falling 28.5% on Friday, marking its worst day ever. Recent runs left precious metals in overbought territory, so a pullback was expected. SLV is still up 17% this year, but volatility in the precious metals is expected.

The Relative Strength Spread—which tracks the performance gap between market leaders and laggards—hit a new all-time high over the past week, highlighting the continued dominance of momentum as we head into February. Momentum and relative strength are the pillars of the charting system I use.

As we close out the first month of 2026, momentum remains a resilient leadership theme within U.S. equities. Overweighting recent winners and underweighting laggards can enhance returns, particularly in an environment where winners continue to dominate losers. Strong sector trends, concentrated leadership in technology, and widening performance dispersion across the broader market have all contributed to momentum’s continued strength. Indicators point to another good year for momentum.