Weekly Stock Market Update & SPY Technical Analysis
Markets booked their fastest correction on record last week, leaving two major indexes in bear market territory heading into the weekend. The Nasdaq Composite Index and the Russell 2000 are now both more than 20% below their all-time highs, with the S&P 500 and Dow Jones catching up quickly. The sell-off that began earlier this year intensified after Trump’s “Liberation Day” announcement of unprecedented tariffs encompassing all major global trading partners. Markets around the world trembled in response, and analysts quickly adjusted their economic outlook. Most notably, JPMorgan raised the odds of a recession to 100% this year.
Previous tariff announcements from Trump were often followed by quick reversals, but this time, there seem to be no take-backs. The administration is holding its ground, while other countries have begun adjusting their tariffs on the U.S. in hopes of fostering better trade relationships. This could all be a political strategy, with the administration gradually adjusting the numbers over time—but nobody knows for sure.
Heading into this week, investors are bracing for the start of quarterly earnings season, where uncertainty is expected to be high across all reports. Companies are likely to mention tariffs multiple times during their earnings calls—and not in a positive way. Financials are set to kick off the season, with JPMorgan, BlackRock, and Wells Fargo (WFC) being notable names to watch this week.
This week also brings a plethora of important economic data, with the following in focus:
- Consumer Credit (Mon)
- FOMC Minutes (Wed)
- Consumer Price Index – Inflation Report (Thu)
- Producer Price Index (Fri)
- Consumer Sentiment (Fri)
SPY Technical Analysis:
At the time of publishing this analysis, market futures look grim heading into the week, with the S&P 500 projected to open below key support levels. We’ll be adjusting our levels and targets daily as the market evolves. The next strong support zones for SPY are around 480.00 and 460.00.
Last note,
We had a full watchlist developed for the week ahead, but considering the futures market already points to another significant drawdown, we’ll be waiting further development before confirming any new entires. Our strategy this week will be the same as last week, focused on capitalizing on the intraday volatility for day trades and scanning for reversal points to take on some swing trades. Wanna join us for daily premium updates and set-ups? Click here!