Market Commentary for February 2025
A cautious note...
By Alan Hull
I am bullish for 2025…and especially the first half of 2025. This is because I expect the Trump Administration will probably enjoy a honeymoon period until at least June. And so far the markets are enjoying the initiatives that the Trump Administration are undertaking. This is evidenced by the upside continuation pattern we are seeing in the charts…..
It’s been two weeks of upside on the SP-500 (above) which represents both the New York Stock Exchange and the NASDAQ Stock market. But on a cautious note…the upper boundary of the SP-500’s long term trading channel is currently at 6,400 points and the market is closing in on it. The SP-500 will hesitate when it reaches this upper boundary and will most likely pull back. So traders and investors need to be aware of this major overhead resistance level.
If you are not aware of it then you will be in for a shock, but to be forewarned is to be forearmed. It could represent a big buying opportunity before the next major rally gets under way. And that’s how markets work…they go up and then they go down… then they go up and then they go down. But right now they are going up and you can watch my latest market review to learn more about this…