Technically Speaking – March

March 5, 2025

Long Term Resistance: SP500   6075 – 6150

Long Term Support : SP500        5700 – 5650 then 5400 – 5350

After making a new high during Feb the Markets have corrected hard. The volatility as we predicted has picked up. The markets are nervous because they don’t have a clear picture of how the political landscape will affect growth. Stocks can pull back 5 to 10% quickly and maybe more. The support zones are much lower each time support is broken. The fear of Tariffs will keep the Volatility at the fore front of Investors’ minds. I expect a move to about 5700 before a bounce if that does not hold, expect the SP500 to fall aggressively to the SP500 5500 level and below. If we fall to 5700 and bounce use that rally to make sure you mitigate the risk and have cash to buy. I believe the technical support level will be lower and probably won’t bottom until April sometime. Please don’t sell everything and think you can catch the bottom. It will not happen. The proper way to invest is to reduce risk by increasing cash positions and mitigating risk with hedging. As the Markets fall your mindset will be when to step up and buy, not to panic sell.

We have a lot going on Politically and economically. The confusion will create intense volatility which if you don’t panic and stay patient you can benefit over time. Stay with quality companies and/or indexes.