Technically Speaking – April

May 2, 2025

Long-term Resistance: SP500  5850 then 6100 plus

Long – Term Support: SP500  5400-5450 then 5100-5150

Markets have rallied off the SP500 5000 level, then fell back to make a higher low at SP500 5100. The latter part of April saw shorts covering and buyers afraid of waking up and hearing a major trade agreement agreed upon. This caused the SP500 to rally back over 5600 with strength and weakness depending on the earnings news. I believe the volatility is here to stay. We have a long way to go to get the Tariff situation done, implemented and working. It will be 90 to 120 days before we see any outcome to the current situation. Until I see reason to NOT believe the outcome will be positive, I will use the Volatility to our advantage. The lows and support levels have and will continue to be buying and adding to risk opportunities. I also will be looking to be pairing back risk as the Markets rally. The technical picture is positive and can still go a bit higher, all based on 2 things, tariff agreements and Fed eventually lowering interest rates. My suggestion is to tune out all the news from the media and concentrate on risk control. Remember, we need evaluation outlook to be positive for a sustainable bull rally and that will not happen for a while. Clarity is important for new highs in the Markets, so remain cautious until then and use volatility to your advantage.