SP500 Trading Strategy Update – February 05, 2026 – Bearish Trend Developing – System is Currently Invested (-3.4%)

Today’s price:O: 57.38 H: 57.84 L: 56.53 C: 56.85

Price is -2.6% down from previous close.

Despite a 2-day downtrend, the system is holding a position based on earlier signals.

The system entered a long position on Dec 31, 2025 at 58.83. As of today’s close, the price is 56.85 showing a gain of -3.4%.

SPW S&P500 Trading Strategy comparison vs. Buy and Hold

Below, we compare the performance of SPW versus a Buy & Hold approach. Our SP500 Trading Strategy will trade SSO, while the Buy and Hold would trade any S&P500-based ETF such as SPY. The comparison starts on 11, Aug 2023

Closed Ops: 12 – Won: 11 Lost: 1
Profit Ratio: 7274%
System Quality Number: 3.3

Performance Summary: SPW Strategy vs. Buy & Hold

SPW, our S&P500 Trading System continues to provide a high return rate of 1818.8%, with less drawdown than a Buy & Hold approach: 16.0 SPW vs. 18.9 Buy & Hold. It currently maintains a win rate of 91.7, with 11 wins and only 1 losses.

Volatility Analysis

Currently in Quadrant 1:

Volatility wave is currently in phase 1 — Downthrust Phase.

As of February 05, 2026, SPX fell -1.23%. The market is on the higher region of the volatility wave, reflecting an extended rally, and short-term swings are intensifying.

© SPW · spwoodpecker.com