Technically Speaking – October

November 5, 2025

Long Term Resistance SP500:  6920

Long Term Support SP500:   6550 then 6350

October continued the positive trend with the S&P finishing the month up over 2%, the NASDAQ up over 4% and the DOW up about 1%. Tech continues to be the main driver in this market, which helped the S&P to close out October at an all-time high. The all-time high of 6,920 is now the long-term resistance, which if it breaks through that level then we could see the S&P go to 7,000 by the end of the year. This positive trend and sentiment were helped by strong earnings and guidance, predominantly by tech companies. We are in the beginning of the AI revolution, and companies are spending big to grow and evolve with the new technology.

With this new era of technology comes a lot of hype and speculation. Investors are extremely excited about the future, whether it be Artificial intelligence, quantum computing, or the new technology that could come along with it. The excitement of the future in technology, along with the Federal reserve dropping rates for a second straight month helped companies, especially small cap, explode higher during October. With the quick rise in these small cap stocks comes nerves and doubt. Investors could become more nervous that valuations are too high and doubt that the stocks will continue to rise at the pace they currently are. It is not a bad idea to look to raise some cash from some of these stocks, which have increased so much so quickly, in order to reduce risk but still have exposure to this asset class.