S&P 500 Daily Update for Monday October 6, 2025

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Market Summary for Friday, October 3, 2025:
Outlook for Monday, October 6, 2025:
Market Performance:
The S&P 500 was nearly flat, closing up 0.01% with below-average volume. The Dow and S&P set new all-time highs, though gains were minimal and lacked strong follow-through. Mega caps, large caps, and tech underperformed, contributing to the lack of momentum.
Economic Data: The government shutdown delayed the employment situation report. The S&P Global U.S. Services PMI rose to 54.2 (indicating expansion), while the ISM Services Index came in weaker than expected at 50 (borderline expansion/contraction), down from 52%. No major inflation concerns were noted.
Technical Analysis: The S&P 500 opened higher, briefly surpassing R1 (6734) and reaching 6750 but failed to hit R2 (6752). It later dipped below R1 and the unchanged level, finding support at the daily pivot (6714) to close slightly positive.
Short-term indicators (e.g., 20-period moving average) remain positive, but some (RSI, stochastics) show waning momentum. Intermediate-term indicators such as the Chaiken Oscillator turned negative, suggesting a lack of strong conviction.
Long-term trends are positive, with the market above the 50- and 200-day moving averages. However, the distance from the 200-day moving average (over 11%) signals potential overextension.
Fed Commentary: Fed Chair Philip Jefferson emphasized balancing inflation and employment, while Goolsby cautioned against aggressive rate cuts. Market expectations include rate cuts in October and December 2025, with at least one in 2026.
Sentiment and Volatility: Sentiment remains neutral, supporting market resilience as skepticism persists. The VIX is low, showing little fear, though the VIX-to-S&P correlation is rising, hinting at potential short-term volatility.
Sector Performance: Growth stocks underperformed, while value sectors (utilities, healthcare) showed relative strength. Tesla declined post-earnings, and discretionary stocks weakened.
Market Outlook: The S&P 500 remains positive but lacks strong conviction, with mixed signals in short- and intermediate-term indicators. Support levels (e.g., 20-day moving average, 6,700) are key if a pullback occurs. The upcoming FOMC meeting minutes and potential delayed economic reports (e.g., employment data on October 10) will be focal points. Seasonality for early October is positive, especially in post-election years.
For Monday, October 6:
No economic reports are expected due. Geopolitical events and cultural issues have not significantly impacted the markets. Seasonality suggests a positive bias for the Dow and neutral-to-positive for the S&P and NASDAQ.

PDF of Slides:
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DISCLAIMER This video is for entertainment purposes only. I am not a financial adviser, and you should do your own research and go through your own thought process before investing in a position. Trading is risky!