Daily Update Podcast for Wednesday May 28, 2025

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Summary of the Daily Update for Tuesday, May 27, 2025, and Outlook for Wednesday, May 28, 2025
Market Performance on Tuesday May 27, 2025:
Market Bounce: The S&P 500 rose 2.05%, with growth stocks and mega caps performing strongly, though on below-average volume.
Tariff News Impact: A 50% tariff announcement against the EU before Friday’s open caused a market drop. Over the weekend, a delay until July 9 was announced, leading to a gap-up in futures and a strong Tuesday open above 5862, reaching resistance at 5924 (R3).
Market Dynamics: Late-day buying and short covering pushed prices higher at the close, but the needs follow-through and is trending sideways. The VIX fell below 20 to 18.98, indicating reduced volatility.
Economic Indicators:
Interest Rates: 10-year Treasury yield dropped to 4.43% from 4.51%, supporting stocks.
Consumer Confidence: Stronger than expected at 98 (vs. 87 forecast).
Durable Goods Orders: Down 6.3% month-over-month (better than -8.1% expected).
Housing: FHFA house price index down 0.1%, Case-Shiller up 4.1% year-over-year (below 4.4% expected).
Inflation: Truflation reported a rise to 2.08%.
Sectors: Discretionary and tech led gains, while defensive sectors (health care, staples) lagged, signaling a more positive environment.
Technical Analysis:
Positive above short-, intermediate-, and long-term moving averages.
Momentum indicators (e.g., PMO, TTM squeeze) remained weak or mixed, with no clear trend (ADX sideways, below 20).
Advance-decline line and accumulation distribution improved but showed no significant momentum shift.
NASDAQ 100 bullish percent index is extreme positive, while S&P and NYSE indices are lagging.
Frustrations and Market Randomness:
The market is reacting to off-hours policy announcements (e.g., tariffs), creating large gaps up or down, frustrating for this who rely on technical analysis.
Randomness in market action, driven by geopolitical and policy news, is overshadowing typical market logic, making trends harder to predict.
Outlook for May 28, 2025:
Key Events: FOMC meeting minutes at 2 p.m. ET could influence sentiment. MBA Mortgage Applications Index also due.
Seasonality: Neutral to positive for the Dow, positive for S&P and NASDAQ.
Market Sentiment: Positive based on moving averages, but momentum remains mixed. Investors are increasing hedging, with more puts than calls, indicating caution.
Risks: Potential for further volatility due to unpredictable news from the administration. Upcoming GDP data (Thursday) and core PCE/consumer sentiment (Friday) could sway the markets.
Technical Outlook: Support at 50- and 100-period moving averages has held so far, but low volume and weak momentum suggest caution. A move above 6,000 for the S&P could signal stronger bullish momentum.
Conclusion: Despite a strong 2% gain, the S&P 500 is lacking consistent trends due to external news-driven volatility. Charts show slight improvement but no robust momentum, and frustration persists due to unpredictable policy announcements. Investors should remain hedged and cautious.

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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!