Posts by The Trend Letter

Markets Rallying Into Resistance

Market Summary – May 1, 2025

US stocks extended their rally Thursday:

  • S&P 500 rose 0.6% to 5,604.14, marking its 8th straight gain.
  • Dow Jones added 0.2% to 40,752.96.
  • Nasdaq surged 1.5% to 17,710.74, erasing April’s losses.

Microsoft jumped 9% after posting $70B in revenue, with strong AI-fueled cloud growth. Meta also beat expectations with a 16% YoY revenue gain and plans to ramp up AI capex.

Positive Big Tech earnings eased investor concerns about April’s market volatility sparked by Trump’s tariff threats.

S&P 500 Analysis: Nearing Resistance

In our latest Trend Letter outlook, we flagged 5,500–5,700 as key near-term resistance, with 5,800 as a structural cap.

Recent Price Action

  • Monday–Tuesday: Index reclaimed 5,500
  • Thursday: Closed at 5,604 – just 96 points below 5,700

Key Resistance Levels

  • 5,700–5,800:
    • 5,700 = 50% Fib retracement + March swing low
    • 5,746 = 200-day MA
    • 5,800 = March high

Catalysts & Risks

  • Bull Case: A breakthrough on tariffs could push the S&P beyond 5,800
  • Bear Risks:
    • Major resistance zone at 5,750–5,800
    • Sticky inflation: Q1 core PCE rose to 3.5% (vs. 2.6% in Q4 2024)
    • Tech valuations stretched – earnings must keep delivering

 Be very cautious buying stocks in the 5,700–5,800 zone.

Gold: Pullback in Progress

Gold dropped to $3,233/oz, a two-week low.

Drivers of the Decline:

  • Trade deal speculation reduced safe-haven demand
  • Rising USD pressured global buyers
  • Overbought conditions triggered profit-taking

As we warned in our April 21st update, gold is now hitting the top of two intersecting long-term channels—just like it did before its late-2022 low. This could mark a short-term top.

Support Levels to Watch:

  • Initial: $3,200
    • Deeper: $2,960 and $2,850

We believe a pullback here could set up a strong buying opportunity.

Bitcoin: Key Resistance Ahead

Bitcoin has rallied over 30% off its April low of ~$74K, now trading above $96K.

  • Cleared resistance at $92.5K
  • Next levels: $100K and all-time high at $108K

Momentum is strong, but BTC is nearing key psychological and technical resistance

Bitcoin has rebounded impressively from its April low of around $74,000, marking a 30% surge. It has now pushed through key resistance at $92.5K, which was a very strong previous support level.  The next resistance level is $100K and then its all-time high at $108K.

The S&P 500 is nearing our projected near-term top. Are you ready for what’s next?

Our Trend Letter and Technical Trader teams have consistently helped investors navigate tops and bottoms — and now, with the S&P 500 approaching the 5700–5800 zone we forecasted, it’s time to prepare.

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Markets Slide as Political Turmoil Erodes Confidence

Global equities tumbled Monday, driven by political instability, policy uncertainty, and rising trade tensions. Trump’s threat to fire Fed Chair Jerome Powell further undermined confidence in the Fed’s independence and the broader US financial system.

The S&P 500 heatmap was a sea of red, with Netflix a rare bright spot. Major tech names led the decline: Tesla (-5.75%), Nvidia (-4.51%), Salesforce (-4.45%), and Meta (-3.51%).

S&P 500 Technical Analysis

For the S&P 500, initial resistance is at 5,500 (lower red horizontal line); a break above that opens the door to 5,700 (upper red horizontal line). Support sits just under 5,000 (upper green horizontal line), with 4,800 (lower green horizontal line) as a key weekly level to watch.

Any positive trade deal headlines could spark a bounce this week, but further US–China escalation would cap upside potential. The longer uncertainty lingers, the greater the damage to the global economy, and declining business and consumer confidence is a long-term drag on equities.

For short-term traders, a dip to  5000 could trigger a bounce, but any rebound is likely capped at 5400.

Bond Yields Rising

Yields jumped on inflation fears, declining foreign demand, and policy chaos:

  • Tariff Shock: Trump’s April 2 tariffs first triggered recession fears, then inflation worries—pushing yields higher.
  • Foreign Selling: China and Japan cut Treasury purchases, while weak auctions and hedge fund deleveraging sent the 10-year yield to 4.5% intraday (April 8). Many allies, frustrated with Trump, see little reason to back U.S. debt.
  • Economic Risk: Higher yields threaten U.S. debt servicing ($37T) and consumer borrowing, deepening financial stress.

Flight to Safety

Gold hit a fresh all-time high at $3,422, now up 31% year-to-date, on pace for its best annual gain since 1979. Though technically overbought, it remains the go-to safe-haven. Trade war fears are driving investors, hedge funds, and central banks to unload US assets and pile into gold.

The primary retail buyers are in Asia.

Looking back to gold’s 2011 high, we see it trading within two parallel channels. The last time we saw intersecting channel, it marked a major low in late 2022 (lower white circle).

With the lines crossing again near current levels (upper white circle), this could signal a potential short-term top. A meaningful pullback from here could present a solid buying opportunity.

Bitcoin Rallies as Dollar Slides

Bitcoin posted its strongest day in weeks, fueled by a combination of macro pressures and renewed institutional interest. Confidence in traditional assets took a hit as Trump’s attacks on the Federal Reserve and its leadership weakened the US dollar, driving investors toward Bitcoin as a hedge. Meanwhile, institutional demand picked up, highlighted by Japan’s Metaplanet buying 330 additional BTC and strong inflows into US Bitcoin ETFs.

Bitcoin is now testing initial resistance at $88.3K, with major resistance at $92.5K – the same level that served as strong support from November through December.

Keep your head on a swivel  – this is far from over!

Stay tuned!

Martin

Markets Rally, Bonds Break, Gold Soars—What You Need to Know

Markets End Volatile Week with a Strong Rebound – April 11, 2025

Markets capped a wild week with a strong finish, shrugging off trade war shocks and riding a wave of optimism:

  • Stocks Bounce Back: After days of volatility, the Dow surged 600 points (+1.6%), the S&P 500 climbed 1.8%—its best week since October 2023—and the Nasdaq jumped 2.1%, led by a tech resurgence.
  • Trade War Tensions: Markets were rattled by China’s retaliatory tariffs of up to 125% and President Trump’s aggressive 145% hikes on Chinese imports. Yet, solid bank earnings and cooling inflation helped restore investor confidence.
  • Flight to Safety: Gold soared to a record high as a safe-haven play, while 10-year Treasury yields surged to 4.53%, approaching multi-decade highs.
  • Tech Leads Recovery: Mega-cap tech stocks including Nvidia, Microsoft, and Tesla staged a strong rebound after Thursday’s sharp selloff.

Despite intense geopolitical and market pressure, Wall Street closed the week with notable strength, showing surprising resilience.  ​The  S&P 500’s performance for the week ending, was its strongest since November 2023. Here is today’s heat map:

How 145% Tariffs on Chinese Imports Could Shock U.S. Consumers

With over 70% of key consumer goods like smartphones, furniture, and video games sourced from China, tariffs could trigger sharp price hikes across everyday essentials.

Bond Market Flashing Red: Why Yields Are Surging Despite Stock Market Weakness

There’s a notable shift in Trump’s focus this term compared to his first. Back then, he constantly cited the stock market as proof of a strong economy. This time, he’s barely mentioned it.

Instead, the emphasis is on policy—tax cuts, deregulation, spending restraint—and notably, lower borrowing costs. His Treasury Secretary, Scott Bessent, a former hedge fund manager, has made it clear: the goal is to bring down the 10-year Treasury yield.

But the market isn’t cooperating.

The 10-year yield, which dipped to 3.7% on April 4, has surged to nearly 4.5%—an 80 basis point jump in just one week. That’s the opposite of what Trump and Bessent want. Rising yields suggest the bond market expects higher inflation, even as economic growth slows—a recipe for stagflation.

Stagflation puts the Fed in a tough spot. Cutting rates could fuel inflation, but rising yields make borrowing more expensive for consumers, businesses, and the government.

So why are bonds selling off while stocks are falling? Isn’t the bond market supposed to be a safe haven?

The first part of the answer  answer lies in the scale of US borrowing. The government needs to issue $7–8 trillion in new debt this year to fund ongoing deficits and refinance maturing debt. With annual deficits exceeding $2 trillion and total debt above $37 trillion, supply is overwhelming demand.

Layer in the geopolitical angle: the US and China are in a full-blown trade war. China—America’s second-largest foreign bondholder—has leverage. If China were to start selling US Treasuries while the US is issuing trillions more, bond prices would plunge and yields would spike.

Plus, many US allies aren’t exactly eager to support bond auctions while facing tariffs of their own. Why help fund a government that’s targeting your economy?

If yields continue climbing toward 5% or higher, it could spell serious trouble for the US economy—and likely drag the stock market down with it.

Gold Surges to New Highs as Safe Haven Demand Soars

Gold is ripping higher—up $70 today to a fresh all-time high of $3,250.

Just last week, it dipped to $2,970 during a broad market panic that triggered liquidation across all assets—gold included. It was a classic case of the baby getting thrown out with the bathwater. But that selloff didn’t last. Investors quickly stepped back and asked: What are the real safe haven plays right now?

Treasuries? The yen? Neither offer the confidence they once did. Bitcoin has been trading more like a tech stock than a store of value. That leaves gold—and it’s showing why it still holds safe-haven status.

Notably, gold doesn’t look like a crowded trade. COT data last Friday showed net-long positions at year-over-year lows, a bullish contrarian signal.

Yes, gold is expensive relative to other assets:

  • The gold/oil ratio is at 53:1 (vs. a historical average of ~20:1).
  • The gold/silver ratio has ballooned to 103:1 (vs. a long-term norm around 50–60:1).

But these extreme ratios reflect deep global uncertainty. The West’s seizure of Russian reserves and removal from SWIFT showed that financial infrastructure can be weaponized. That sent a clear message to countries like China, Russia, and Iran: don’t trust the West—buy gold.

Add in today’s escalating trade wars and rising geopolitical risk, and it’s no surprise that central banks are aggressively adding to their gold reserves. Retail investors are following suit, looking for a hedge amid global turmoil.

Key levels to watch:

  • Resistance: $3,300
  • Initial support: $3,050
  • Major support: $2,960 (last week’s low)

For now, gold remains in a strong uptrend. It may pause or consolidate, but there’s little to support a bear case in the near term.

Stay tuned!

Markets Now Move at Trump’s Whim

Forget AI hype. Forget earnings. These days, stock prices hang on one thing: what President Trump says next. His words spark chaos, drive momentum, and overshadow everything else.

After announcing ‘reciprocal tariffs’ on April 2, markets plunged for four straight days. Then, at 1:18 PM today, he took to social media to say he’s ‘substantially lowered’ those tariffs to 10% for a 90-day negotiating window. At the same time, he doubled down on China—raising their tariff rate to 125%.

The market reaction? Instant. Explosive. Stocks ripped higher with near-record gains on a massive 30 billion shares traded. It wasn’t earnings, data, or innovation that moved the needle—it was a single post.

Key Highlights:

  • Major Index Performance:
    The Dow Jones Industrial Average surged nearly 3,000 points, or 7.87%, to close at 40,608.45—its largest percentage gain since March 2020. The S&P 500 jumped 9.52% to 5,456.90, notching its best single-day performance since 2008. The Nasdaq led the charge, skyrocketing 12.16% to finish at 17,124.97.
  • Sector Performance:
    Technology stocks fueled the rally, with Apple climbing over 15% and Nvidia surging nearly 19%. Tesla saw a sharp gain of more than 22%. Defensive sectors, including health insurance and defense, also posted solid gains following favorable policy developments.

We’ve reached the point where markets no longer move on earnings, revenue growth, or even AI hype. Now it’s all about what the President says—and the reactions are massive. One post, one offhand announcement, and stocks either soar or sink.

Today’s violent rebound, coming right after a steep selloff, draws uncomfortable parallels to past meltdowns—think the Dotcom Bust or the Financial Crisis—when similar sharp swings masked deeper instability..

Wild Ride: 533-Point Swing Sets Up Key Test

Today’s massive intraday move—from a low of 4,948 to a high of 5,481—was a jaw-dropping 533-point swing. The next key resistance? The white downtrend line, hovering around the 5,500 level.

A Trader’s Dream Day—But Caution Still Rules

Today was a gift for short-term swing and day traders. Some of the biggest rallies happen in bear markets, and this was a textbook example.

While there may be a bit more upside in the near term, uncertainty still looms large—and markets hate uncertainty. Relief rallies can be powerful, but let’s be clear: we’re still in a downtrend – at least for now.  The S&P 500 needs to push through 5500and hold above that level.

Stay tuned!

Recent Hedging Wins Speak for Themselves

Recent Hedging Wins Speak for Themselves

As market volatility continues to dominate the financial landscape, having a reliable hedging strategy is no longer optional—it’s essential. Recent market activity has once again shown the power of using targeted instruments to both protect your portfolio and capture meaningful gains.

Take a look at some of the Trend Technical Trader (TTT)’s recent results that illustrate the effectiveness of these strategies:

EWV – ProShares UltraShort MSCI Japan

Delivered a 22% gain (including dividends)

FAZ – Financial Bear 3x

Produced a 37% gain

TZA – Small-Caps 3x Bear

Locking-in a 27% return

VXX – Volatility ETF

A 15% gain following an earlier position that returned 101% last August

These results highlight how strategic hedging—through inverse ETFs, volatility trades, and sector-specific plays—can not only protect your capital but also deliver strong upside in uncertain markets.

At Trend News, our priority is to help you navigate volatility with confidence by applying tested strategies that manage risk while seeking high-potential opportunities.

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Markets Tumble as Tariff Shock Sparks Global Selloff

Global stock markets suffered a steep crash today after President Donald Trump announced sweeping new tariffs, triggering one of the worst trading days in years.

Major Index Losses

  • Dow Jones Industrial Average plummeted 4%, shedding 1,680 points — its steepest single-day drop since 2020.
  • S&P 500 sank 4.8%, approaching correction territory.
  • Nasdaq Composite plunged 6%, officially entering correction territory with a 16.8% decline from its December peak.

Sector-Wide Selloff

  • Tech stocks led the rout:
    • Apple fell 9.3%
    • Amazon dropped 9.04%
    • Nvidia slid 7.78%
  • Retail stocks were hammered due to tariff exposure:
    • Restoration Hardware collapsed 40.1%
    • Nike fell 14.4%
    • Target declined 10.8%
  • Financials took a major hit as recession fears surged:
    • Bank of America dropped 11.1%
    • American Express fell 9.9%

Technical Analysis of S&P 500

The S&P 500 closed today at 5397, landing precisely on our previously identified support level (green horizontal line). The next 24 hours will be critical — if this level holds, we could see a short-term relief rally. However, the path of least resistance remains lower, with the next significant support zone down at 5245 (yellow horizontal line).

Markets absolutely hate uncertainty, and in this case, Trump’s tariff announcement has likely increased it, not reduced it. Some reasons why?

Mixed Signals

While the tariffs were announced with strong rhetoric, Trump also said he’s open to negotiation. That creates ambiguity. Are the tariffs a firm policy? A bargaining chip? A first move in a longer game? Investors don’t know — and uncertainty leads to risk-off behavior.

Potential for Escalation

Other nations might retaliate, which could trigger a full-blown trade war. The market is pricing in not just what has happened, but what could spiral out from it.

Timing Matters

Markets were already jittery — the Nasdaq had already been sliding — and this announcement poured gasoline on a smoldering fire. Investors are now grappling with the possibility of higher inflation, slower global trade, and a potential recession.

We do not have a crystal ball, nor does anyone else. That is why we rely on the charts and our models. We use technical analysis to tell us the most likely support and resistance levels and right now, we’re sitting at the first major test. If 5397 breaks down decisively, we’re looking to the next key support level at 5245 for signs of stabilization.

Gold surged to an all-time high earlier in the session, fueled by safe-haven demand in response to President Trump’s aggressive tariff announcement. But as the session wore on, many investors took profits, prompting a reversal in prices after the sharp rally.

Selling the Baby with the Bathwater

The broader market meltdown triggered margin calls and liquidity stress for leveraged investors. In such scenarios, gold — being one of the most liquid assets — is often sold to cover losses elsewhere. This forced selling contributed to gold’s intraday decline.

While gold usually benefits from economic and geopolitical uncertainty, today’s pullback appears to be more about short-term volatility than any fundamental shift in sentiment. We continue to view gold as structurally strong and expect it to remain resilient in the coming months.

Technical View

From a technical standpoint, we’re watching for gold to retest the upper boundary of its uptrend channel (red diagonal line) — a former resistance level that now serves as support. It’s likely gold will test this level multiple times, and if it eventually breaks below, we’ll be watching for the next key supports at $3,000 (green horizontal line) and then $2,950 (yellow horizontal line).

Oil prices tumbled sharply today, driven by a combination of demand concerns and unexpected supply increases — creating a ‘double whammy’ for energy markets.

  1. Recession Fears Fueled by Tariffs

Trump’s sweeping new tariffs have stoked fears of a global economic slowdown. A weaker global economy typically leads to reduced energy consumption, placing downward pressure on oil demand.

  1. Surprise OPEC+ Production Hike

OPEC+ added fuel to the selloff by announcing a larger-than-expected output increase of 411,000 barrels per day starting in May. The move caught markets off guard and raised concerns about a potential supply glut.

  1. Rising U.S. Crude Inventories

The Energy Information Administration reported a 6.2 million barrel rise in U.S. crude inventories last week — a sign of weaker domestic demand that further weighed on market sentiment.

Technical View for Oil

Oil closed the day at $66.95, sitting directly at its previously established strong support level (green horizontal line). This marks the seventh time oil has tested this support. With each additional test, the likelihood of this support level breaking increases, as repeated testing tends to weaken the strength of a support zone over time.

Navigate Market Volatility with Confidence

In times like these, uncertainty brings both risk and opportunity. That’s why making smart, informed decisions is more critical than ever.

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—Martin

Market Recovery or Temporary Relief? Key Insights on S&P 500 & Gold

The S&P 500 closed higher for the second consecutive day, marking a positive turn after four weeks of negative results. The index rose 0.6% to 5,675.12, showing signs of recovery after entering correction territory last week. However, Tesla and Nvidia bucked the trend, with Tesla down 5.36% to $236.55 and Nvidia down 1.98% to $119.27.

Key drivers included weaker-than-expected retail sales data, which raised expectations for potential Federal Reserve rate cuts later this year. Investors are also closely watching the Fed’s two-day meeting starting Tuesday, where rates are expected to remain unchanged.

Technical Analysis of the S&P 500:

The S&P 500 successfully pushed through and closed above its previous support level at 5670. This marks the first test of the current rally. The next challenge will be to surpass the early January low at 5775 (red horizontal line), which is expected to present stronger resistance.

These tests are crucial in determining whether this rally represents a ‘buy the dip’ recovery or a ‘sell the rip’ dead cat bounce. Previously, when the S&P 500 was trending within its upward channel, declines within the channel offered ‘buy the dip’ opportunities. However, with the index now below that channel, any bounce must demonstrate strength by breaking through key resistance levels to avoid the risk of further downside.

It’s important to note that losing support at 5,670 has left the S&P 500 vulnerable to potentially testing its next key support level just under 5,400.

Gold Update:

Gold has experienced an impressive surge over the past two and a half years, climbing 85% since November 2022. Currently, it is testing the upper boundary of its uptrend channel (white circle), which suggests that this resistance level is likely to hold. As a result, a pullback or consolidation appears probable. Such a correction would be a healthy development for gold, allowing it to build momentum and gather strength for its next potential move higher.

Navigate Market Volatility with Confidence

The current market environment presents both challenges and opportunities for investors. As we navigate through this period of uncertainty, it’s crucial to stay informed and make strategic decisions.

Now is the perfect time to subscribe and gain trusted guidance in these uncertain markets. Our mission is to help investors make well-informed decisions when it matters most.

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Stay ahead of the curve—seizing market opportunities starts here!

Martin

Market Update: Key Levels, Tech Rebounds & Apple’s Warning Sign

On Wednesday, March 12, 2025, U.S. stock markets closed with mixed results. Tech stocks led the gains, with Tesla climbing 7.59%, Palantir rising 7.17%, and Nvidia advancing 6.42%. In contrast, consumer stocks lagged, as Target fell 4.86%, Procter & Gamble declined 2.74%, and Walmart edged down 2.56%.

he S&P 500 and NASDAQ Composite saw a rebound, but until proven otherwise, this remains a bounce within a broader downtrend. For the S&P 500 to shift back to a more bullish stance, it must first reclaim its previous support level at 5,670 (upper green line) and then break through its 200-day moving average (200-DMA) at 5,737 (wavy magenta line). Until that happens, this rally is more likely a “sell the rip” dead cat bounce rather than a “buy the dip” recovery.

Previously, when the S&P 500 was trending within its upward channel (yellow lines), each decline within the channel presented a “buy the dip” opportunity. However, now that the index has fallen below that channel, any bounce must prove its strength by breaking through these key resistance levels. Until then, the market remains at risk of further downside.

As highlighted throughout the week, losing support at 5,670 has left the S&P 500 vulnerable to testing its next key support level just under 5,400 (lower green horizontal line).

For those less familiar with technical analysis, think of support and resistance levels like floors and ceilings in a building. When a stock or index falls below a support level (the floor), that level then acts as resistance (the ceiling). To regain a bullish trend, the index must move back above those resistance levels.

Apple Update:

We’ve been closely monitoring Apple as it recently closed below the neckline of a Head and Shoulders pattern. This technical formation consists of three peaks: a central, higher peak (the head) flanked by two lower peaks (the shoulders). The pattern is confirmed when the price breaks below the neckline, a key support level connecting the lows between the peaks.

This breakdown is a significant bearish signal, indicating a shift from an uptrend to a downtrend. It suggests that selling pressure has overtaken buying pressure, often leading to further price declines as traders interpret it as confirmation of the pattern. A stronger confirmation occurs if the breakdown happens with increased trading volume.

If this move is validated in the coming days, it could be a major development, highlighting potential weakness in one of the best-performing tech stocks of the past decade.

Navigating Market Volatility

If you’re looking for guidance in navigating these volatile markets, now is an opportune time to subscribe to our services. Our mission is to help investors make informed decisions during uncertain times.

To support this, we’re reopening our Special Offers from the WOFC 2025 Conference, providing 33%–57% off regular subscription rates. Click here to take advantage of these exclusive discounts!

Stay vigilant and be ready to adapt—spotting trend changes is what we do!

Martin

Markets in Motion: S&P 500 & Bitcoin in Focus

Following up on yesterday’s update, the S&P 500 closed lower again today, though the decline was far less severe than yesterday’s bloodbath.  Some of the Magnificent 7 stocks actually closed in the green today.

The market downturn continues to be driven by escalating trade tensions between the United States and Canada. President Trump initially announced an additional 25% tariff on Canadian steel and aluminum imports—raising the total to 50%, effective Wednesday. However, reports emerged near the time of this writing that Ontario is suspending its 25% energy surcharge on  exports for US electricity and that Trump will delay the tariff increase, keeping it at 25%. These constant shifts in trade policy have made equity markets increasingly volatile and uncertain.

Technical Analysis of the S&P 500:

The S&P 500 failed to regain its previous support level at 5,670 (green horizontal line) and instead closed down 42 points to 5,572. As highlighted in yesterday’s update, this failure to rally above 5,670 confirms the current bearish tone. If this pattern persists, the next key support level is just below 5,400 (second green horizontal line).

If the S&P 500 can rally and close back above 5,670 tomorrow, a short-term rebound may be possible. While this wouldn’t necessarily signal the market’s ultimate bottom, it could indicate a relief rally. For a more sustained recovery, the index would need to reclaim its position within the uptrend channel (yellow lines) that it fell out of two weeks ago. This would require a rally back to the 6,000 level (red horizontal line,  and red circle).

Bitcoin Update:

Bitcoin broke through its key support level at 92.5K in late February and dropped to a low of 75.4K today before rebounding to 83.2K at the time of this update. While bitcoin is highly volatile, it often serves as a strong indicator of broader market sentiment. A rally in bitcoin suggests a risk-on sentiment in speculative sectors, while a decline signals a risk-off market environment.

Our models indicate that bitcoin could rally back up to the previous 92.5K support level, which will now act as initial resistance. If that resistance holds, bitcoin could fall back toward our target support level of 73K (bottom green horizontal line).

Navigating Market Volatility

Both Trend Technical Trader and Trend Letter anticipated these sharp market declines and issued hedging positions in advance to safeguard subscribers.

If you’re looking for guidance in navigating these volatile markets, now is an opportune time to subscribe to our services. Our mission is to help investors make informed decisions during uncertain times.

To support this, we’re reopening our Special Offers from the WOFC 2025 Conference, providing 33%–57% off regular subscription rates. Click here to take advantage of these exclusive discounts!

Stay vigilant and be ready to adapt—spotting trend changes is what we do!

Martin
Trend News

Markets Tumble – What’s Next for the S&P 500?

The  heat map of the S&P 500 shows widespread declines across sectors, with technology stocks particularly hard hit. The ‘Magnificent Seven’ companies, including Tesla (-15%), Broadcom (-5.34%) and Nvidia (-5.03%) experienced significant losses.

The notable declines experienced by the equity markets were primarily driven by escalating recession fears and uncertainties surrounding US trade policies.​

  • Dow Jones Industrial Average: Fell 890 points (2.1%) to 41,911.71.​
  • S&P 500: Dropped 155 points (2.7%)  to 5,614.56.
  • Nasdaq Composite: Plunged 728 points (4%) to 17,468.32.​

These declines were exacerbated by Trump’s recent comments declining to rule out a potential recession, intensifying investor concerns.

Technical Analysis of the S&P 500:

The S&P 500 has now dropped below its 200-day moving average (DMA) and key support at 5,670. The critical question is whether this breakdown will be confirmed by a close below this level tomorrow. A confirmed close beneath this support could signal a deeper market correction, with the next key support level just below 5,400 (second green horizontal line).

However, if the S&P 500 manages to rally and close back above 5,670, we could see a short-term rebound. While this wouldn’t necessarily mark the ultimate market low, it would indicate a potential relief rally. To confirm a more sustained recovery, the index would need to reclaim its position within the uptrend channel (yellow lines) that it fell out of two weeks ago. This would require a rally back to the 6,000 level (red horizontal line).

Both Trend Technical Trader and Trend Letter had anticipated these sharp market declines and issued hedging positions to safeguard subscribers in advance.

If you’re looking for guidance in navigating these volatile markets, now is the perfect time to consider subscribing to our services. Our mission remains to help investors make informed decisions during uncertain times.

To support this, we’re reopening our Special Offers from the WOFC 2025 Conference, providing 33%–57% off regular subscription rates. Click here to take advantage of these exclusive discounts!

Keep your head on a swivel!

Martin

Trend News