S&P 500指数

SPX | Daily Analysis #7 - 27 October 2025

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Hello and welcome back to DP Weekly Market Review,

Past Week Overview:
The past week saw a strong inflow of volume from investors optimistic about a market rebound, following the sharp two-week decline driven by renewed U.S.–China trade tensions. The S&P 500 initially showed a K-shaped reaction, but buyers quickly stepped in, pushing prices higher. By Friday, the market not only recovered but also broke above the previous high, setting a new record.

On Sunday, Treasury Secretary Bessent announced that the U.S. and China are ready to reach a trade agreement. This news fueled bullish sentiment in the Asian session, causing a major gap-up in the markets, with the index opening around the 6,850 zone.

Week Ahead:
This week stands as one of the most critical of the quarter for global markets.

Federal Reserve Decision: All eyes are on the Fed’s rate announcement—whether they hike, cut, or hold. Every word from Chair Powell regarding “soft landing,” “inflation progress,” or “economic resilience” could move global markets sharply.
Tech Earnings Season: The “Tech Titans” — Apple, Microsoft, Meta, Amazon, and Google — report their earnings this week. These giants collectively account for around 35% of the Nasdaq’s total weight.
U.S.–China Relations: President Trump is expected to meet President Xi for the first time in his second term, with trade tensions still in the background.

1H – 4H Technical Outlook:
As shown on the chart, the market opened with a large bullish gap. Some short-term traders anticipate a pullback to fill the gap, which could push prices down toward the 6,800 area. However, a sustained move above 6,860 may signal further bullish momentum toward the upside.

Trading Strategy:
For now, patience is key — let the market reveal its reaction around key price zones before entering new positions.

Disclaimer:
This content is for informational purposes only and does not constitute financial or investment advice. © DIBAPRISM

Amir D.Kohn

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