S&P 500 Stalls at 7,000 as Energy Outperforms and Silver Gets Obliterated

Some weeks the market hands you a neat narrative. This week, it’s a Jackson Pollock of asset classes, with the S&P 500 brushing up against the 7,000 milestone before recoiling, energy stocks flexing as the only sector with a pulse, and silver—well, silver just got steamrolled by a herd of runaway algos. If you’re looking for a tidy story, look elsewhere. But if you want to understand why this week’s price action matters for your next trade, keep reading.

The S&P 500’s flirtation with 7,000 was the main event, and for about five minutes, it looked like the index might break through and never look back. Instead, the market blinked. According to Seeking Alpha (2026-02-01), the index is now just 0.56% off its all-time high, but the late-week reality check was impossible to ignore. Momentum waned, technical cracks appeared, and the only sector not looking like it just ran a marathon in sand was energy. XLK, the tech ETF, closed flat at $143.9, while DBC, the broad commodities ETF, sat motionless at $24.45. The real action was elsewhere: silver, via the AGQ ETF, cratered 65% in a single session, a move so violent it’s almost performance art. This wasn’t about fundamentals. This was the market equivalent of a fat-fingered algorithm going full Jackson Pollock on your P&L.

The context here is as messy as the price action. The S&P 500 has been on a tear, but the rally is looking tired. The last time the index hesitated at a big round number, it spent weeks chopping sideways before deciding on a direction. Energy’s outperformance is the only thing keeping the index from rolling over. According to Seeking Alpha (2026-02-01), energy is acting as a leading indicator, and if you believe in sector rotation, this is the market’s way of telling you to stop chasing tech and start looking at oil rigs. Meanwhile, the labor market is showing cracks—despite Powell’s best efforts to jawbone confidence, the unemployment rate is stuck at 4.4%, and job creation is running on fumes. The macro backdrop is a cocktail of late-cycle signals, with the Fed’s next move as clear as a London fog.

Silver’s meltdown is a warning shot for anyone who thinks liquidity is a given. When AGQ loses 65% in a day, it’s not because the world suddenly decided silver is worthless. It’s because someone, somewhere, hit the wrong button, and everyone else had to pick up the pieces. This is what happens when liquidity dries up and algos start eating each other. If you’re looking for a canary in the coal mine, this is it.

The S&P 500’s late-week fade is more than just a technical hiccup. It’s a sign that the market’s risk appetite is shifting. Energy stocks are getting bid because they’re one of the few places left with positive momentum. Tech is flatlining. Commodities are a coin flip. The labor market is softening, and the Fed is about to get a new chair in Kevin Warsh, who apparently wants to cut rates while shrinking the balance sheet. Good luck threading that needle. If you’re still all-in on the everything rally, it might be time to take a little off the table.

Strykr Watch

Technically, the S&P 500 is at a crossroads. The 7,000 level is now a clear resistance, and the index is just 0.56% off its all-time high. Watch for a retest of 6,950 as a near-term support. If that fails, 6,900 is the next line in the sand. XLK is stuck at $143.9, with no real momentum either way. Energy stocks are leading, so keep an eye on sector rotation flows. DBC is frozen at $24.45, but don’t let the lack of movement fool you—commodities are one tweet away from another round of volatility. Silver is untradeable for now, unless you like catching falling knives. RSI on the S&P 500 is approaching overbought, but not quite flashing red. Momentum is waning, and volume is drying up. This is not the time to get cute with leverage.

If the S&P 500 breaks above 7,000 with volume, you’ll want to chase. If it fails, look for a quick flush to 6,900. Energy stocks are the only game in town until proven otherwise. Tech is dead money for now. Commodities are a volatility lottery.

The risks here are obvious. If the Fed surprises hawkish, this market will not take it well. If labor data comes in weaker than expected, the rally could unravel fast. If liquidity dries up further, expect more silver-style accidents. The bear case is that the S&P 500 rolls over, energy fades, and we get a classic late-cycle correction. The bull case is that the market shrugs off the noise, energy leads, and we grind higher. Right now, the odds are even.

For traders, the best opportunities are in energy and tactical shorts on overbought tech. If the S&P 500 dips to 6,900, look for a bounce. If energy stocks keep running, ride the wave. Avoid silver unless you have a death wish. For the brave, a short-term short on XLK with a tight stop could pay off if tech continues to lag. For everyone else, cash is a position.

Strykr Take

This market is not for the faint of heart. The S&P 500 is at a critical juncture, energy is the only thing working, and liquidity is a mirage. If you’re looking for a hero trade, don’t. Play defense, watch your levels, and don’t chase. The next move will be violent, in one direction or the other. Stay nimble, stay skeptical, and remember: when silver loses 65% in a day, nothing is off the table.