Technically Speaking – August

September 3, 2025

Long Term Resistance SP500:  6525

Long Term Support SP500:   6350 – 6300 then 6125 then 6000-6050

Markets held support from the decline in early August to rally to new highs.  The anticipation of the FED eventually lowering interest rates was the main reason the Markets rallied back off their early lows. However, we now enter the worst month of the year with September being down an average of just over 1%. I don’t see a huge sell off but SP500 6000 to 6100 can certainly happen which would be about a 5% to 7% decline. Tariffs are now becoming a top of the news subject again as the liberal courts ruled that Trump illegally used Tariffs the way he did in most circumstances. What doesn’t make sense is that when Tariffs were first implemented the Markets fell 20% due to the fear of inflation and an economic collapse. What happened after was the Markets rallied to new highs after the 20% decline. Why? Because Tariffs brought in money. Deals were being done, it was all part of the economic policy. But of course, that isn’t good enough for opposition politics. What I am finding out is that Presidents can find all different old laws to try and get what they want. Good or bad that is what happens. So now we must wait until late October to see if the Liberal argument holds up or can Trump continue his economic policy. No matter what side you are on, the big bad Tariffs, at least in the short run have been profitable for the US and the economy has not suffered. Obviously, that can change and so will our opinions.

I believe this Administration, albeit aggressive and innovative, knows what they are doing and more importantly will change course if needed. With that all said, use any weakness to buy the good Quality companies that are driving the next 10 years of our future. At present time, you should have raised some cash and took action to mitigate some risk. Opportunities will occur, just have patience.