Technically Speaking – March

April 2, 2025

Long Term Resistance: SP500 5750 then 5840 then 6000

Long Term Support: SP500 5500 then 5250 then 4800-5000

Markets continue to be very volatile as we all navigate Trump’s economic policy of initiating Tariff’s.  While new Tariff’s will hurt some industries other industries will be able to flourish. Bottom line Consumers may feel some price increases in their favorite products but will see price reductions in others. If prices remain high on certain products consumers will flock towards those that are cheaper. We will become a consumer of needs not wants. Unfortunately, some companies will not make it. Most companies are already making changes to be able to deal with tariffs and those will be able to survive. However, all this uncertainty causes Markets to decline. Markets don’t like murky waters.  However, this is the exact type of environment that will benefit patient investors who have raised cash and mitigated risk. As the markets fall it’s when dollar cost averaging investing shines. Investors that step up to the plate and start buying at the major support levels will eventually be rewarded. Most investors’ anxiety causes fear to buy and usually causes selling at the wrong time. The correct approach was to raise cash and mitigate risk when the markets were at all-time highs. I believe that money can start to look for quality companies and/or indexes at these lower levels.

Going forward the volatility will continue until deals are made with countries hurting more than us with Tariffs. As that happens, America will experience a growth surge due to a fair and equal playing field. We will stop being the ones supporting other countries on the back of our taxpayers. Economic change takes time and changing the direction of our debt levels takes some pain. It’s something that needs to be done, I just hope it shows positive results sooner than later. Look to be buyers on the big declines and if we move higher to quickly take some money off the table. Take advantage of the volatility until the FED starts lowering interest rates again.