Technically Speaking – January

January 6, 2025

Long Term resistance: SP500 6100 (All time high)

Long Term support:   SP500 5845 – 5800 Then 5600 – 5550

Markets did not behave like most investors thought they would at the end of the year. While investors tried rallying the market there was too much selling pressure each time that brought the indexes lower instead of to new highs. As we approach Jan 2025, I expect Volatility to pick up dramatically. The Trump bump was short lived, and we are back at the levels where we started at election time. I believe the economic plan that the Trump administration wants to put forward will eventually prove to be well received. My fear is that it will be met with a lot of resistance, as always, from the opposed party and unfortunately the Republicans don’t always vote in lock step, so I believe a policy fight will occur most of the time. However, as time goes on the reduced regulations and lower taxes, coupled with a clear vision for growth, will allow the Markets to reach new heights.

Volatility will allow patient investors opportunities to buy good quality companies along with major indexes at lower prices. I will be surprised if 2025 offers investors big returns this year, however a patient investor that buys low and mitigates risk at higher levels will prove to be able to navigate the volatility with less stress.

My expectation is that we will see a quick ugly decline soon, followed by a rapid rally and then followed by another decline into the first part of the year. Clarity and chaos will be at odds and the markets dislike uncertainty. So, we will be patient and allow market volatility to dictate our course of action. As markets fall, we will look for opportunities and as they rise we will be mitigating risk.

Happy New Year