Daily Update Podcast for Monday October 27, 2025

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Summary of Market Update for Friday, October 24, 2025:
Outlook for Monday October 27, 2025:
Market Performance:
Major indices (S&P, Dow, NASDAQ, NASDAQ 100) hit all-time highs after a favorable CPI report, leading to a gap-up open and gains throughout the session.
The S&P 500 closed slightly below the 6,800 level, which acted as psychological resistance, with gamma exposure indicating overhead resistance at this level.
Despite the positive price action, trading volume was below average, signaling potential lack of conviction.
Economic Data:
CPI rose 0.3% (below expected 0.4%), and core CPI increased 0.2% (below expected 0.3%), which the market viewed positively.
US manufacturing PMI at 52.2 and services PMI at 55.2, both indicating expansion.
Consumer sentiment slightly declined to 53.6 from a preliminary 55.
New home sales surged, possibly due to declining interest rates, though consumer sentiment remains cautious amid geopolitical concerns.
Technical Indicators:
Short-term momentum is positive, with indicators like Williams %R, CCI 14, and CCI 20 showing strength, and starting to show more conviction.
Price remains above the 20-period moving average, with improvements in technicals, but the S&P 500 is getting far away from the 50- and 200-period moving averages.
ADX indicates a lack of strong trend (below 20 in the short term), and volume lagged, suggesting caution.
Market Dynamics:
Mega-cap tech stocks outperformed, driving indices higher, with optimism around a potential US-China trade deal.
Interest rates rose to 4% for the 10-year yield, and the dollar strengthened slightly.
Sectors like tech and communication showed strength, while staples and energy saw some profit-taking.
Looking Ahead to Monday, October 27:
Upcoming earnings from major tech firms (Alphabet, Amazon, Apple, Meta, Microsoft) are expected to influence the market.
The Federal Reserve’s meeting is anticipated, with expectations of a rate cut, and focus on their commentary.
Seasonality for October 27 suggests neutral to negative trends for major indices.
A potential gap fill from Friday’s session and resistance at 6,800 are key levels to watch.
Hindenburg Omen remains unconfirmed, with a deadline by November 7.
Conclusion:
The S&P 500 remains positive in the short and intermediate term, supported by moving averages, but long-term indicators show mixed signals due to distance from the 200-day moving average.
Volume weakness and geopolitical uncertainties, including US-China trade developments, warrant caution despite the bullish momentum.