{"id":219817,"date":"2025-03-12T07:03:34","date_gmt":"2025-03-12T11:03:34","guid":{"rendered":"https:\/\/ibkrcampus.com\/campus\/?p=219817"},"modified":"2025-03-12T08:37:41","modified_gmt":"2025-03-12T12:37:41","slug":"chart-advisor-analyzing-the-2025-trends","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor-analyzing-the-2025-trends\/","title":{"rendered":"Chart Advisor: Analyzing the 2025 Trends"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">By\u00a0<a href=\"https:\/\/links.investopedia.com\/u\/click?_t=36ba8fa8372241d58b3bfc06997a4332&amp;_m=ca11f2d14c22435dae6a7a828cb9e77c&amp;_e=WN0Fpggj-aw3WRFp9VmBTYAnLjSWMS6HpcFXgs-4NwKCSv9AW7HGSE_TFkznaqcANaEm-oM1PBbPPnxPx4lpPO8Ci9JgW6kQ3yFOz8P8ppiOFBGT9_ePy-pNFvZUxDL43MQskjIwCwj_8BNtfpC8h1JyY7RyxoZ_EDbYh3aSy3AeFmgu9XqFoa6aobCdKSlUIhwaujSSmurAtdoP0wnlow_mk1HxfBrU4WbCbo6jnqYUguICe4j1pSwcOREnlVwJ6O8HAS3Xde-WMPUR-rMasARs-kjB85gER5furdlXuVsnh-lB6wuAO-XRh2UKidyKEiDBxCucmkRSVTsHPZ9NsGOJ8LSImA83DWiWcDdzy2va9MPGASkdrXorYZHDxVflF8WL0-QRn6EPy3U1ZNGGalfQ-97-6h5E8waV94ZfNPQs2kEYeZrplpe1brybPVBREqwXVk2qavMzVNrPpTd7bQ%3D%3D\">David Keller, CMT<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>1\/ Medium-Term Market Trend Model Turns Bearish<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>2\/ 5500 Becomes Minimum Downside Target For S&amp;P 500<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>3\/ Breadth Conditions Continue to Deteriorate<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Investopedia is partnering with CMT Association on this newsletter. \u00a0The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice. The guest authors, which may sell research to investors, and may trade or hold positions in securities mentioned herein do not represent the views of CMT Association or Investopedia. Please consult a financial advisor for investment recommendations and services.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1\">1\/<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Medium-Term Market Trend Model Turns Bearish<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our proprietary Market Trend Model turned bearish last Friday on the medium-term time frame for the first time since October 2023.\u00a0 While our long-term model remains bullish, suggesting the secular trend still remains intact, this bearish signal on the medium-term time frame tells us to focus more on capital preservation than capital growth.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"550\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPY-1100x550.png\" alt=\"\" class=\"wp-image-219818 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPY-1100x550.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPY-700x350.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPY-300x150.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPY-768x384.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPY-1536x768.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPY.png 1600w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/550;\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Note how in 2024 we had five different bearish signals on the short-term time frame, yet the medium-term trend model remained bullish through the entire calendar year.&nbsp; This configuration represented a buyable pullback within a cyclical uptrend, since the medium-term and long-term trends remained firmly in the bullish range.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While we\u2019ve been tracking rotations in market leadership, as well as bearish momentum and breadth divergences since November 2024, the continued bullish reading on the medium-term trend model helped us remain constructive into Q1 2025.&nbsp; There\u2019s no guarantee that we\u2019ll see a repeat of 2022 or any other bear market year, but the fact remains that the trends in 2025 are starting to very much diverge from the bullish path of 2024.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2\">2\/<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>5500 Becomes Minimum Downside Target For S&amp;P 500<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After Monday\u2019s step selloff to start the week, the S&amp;P 500 index is now down almost 10% from its most recent all-time high around 6150.\u00a0 This means that the current pullback is basically in line with the July 2024 drawdown in terms of price and time.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"550\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPX-2-1100x550.png\" alt=\"\" class=\"wp-image-219819 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPX-2-1100x550.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPX-2-700x350.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPX-2-300x150.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPX-2-768x384.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPX-2-1536x768.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPX-2.png 1600w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/550;\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">With the key support level of 5850 in the rearview mirror, and with the 200-day moving average violated on Monday, we have established an initial downside target of 5500.&nbsp; That would represent a 61.8% Fibonacci retracement of the August 2024 to December 2024 uptrend phase, where we would expect at least some sort of countertrend bounce.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The 200-day moving average now becomes resistance above the current price action, and given that the S&amp;P 500 reached an RSI oversold condition for the first time since the August low, we would be looking for other signs of short-term capitulation starting this week.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3\">3\/<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Breadth Conditions Continue to Deteriorate<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Up through the end of last week, some of our longer-term breadth indicators remained bullish, but Monday\u2019s selloff appears to have taken one more breadth indicator off the \u201cstill bullish\u201d list.\u00a0 With less than 50% of S&amp;P 500 members remaining above their 200-day moving average, we can now add \u201clack of breadth support\u201d to the list of bearish market characteristics.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"550\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPX-3-1100x550.png\" alt=\"\" class=\"wp-image-219820 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPX-3-1100x550.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPX-3-700x350.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPX-3-300x150.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPX-3-768x384.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPX-3-1536x768.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/03\/SPX-3.png 1600w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/550;\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Going back to August 2024, that initial pullback from SPX 4600 appeared to be a minor pullback as this market breadth indicator remained above 50%.&nbsp; With most S&amp;P 500 stocks still above their long-term trend barometer, how bearish could things really be?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Then in mid-September, we saw the indicator push below 50% as the S&amp;P 500 made a new swing low.&nbsp; The market ended up going lower for another six weeks before eventually finding a bottom just above 4100 in late October.&nbsp; Now with less than 50% of S&amp;P 500 members remaining above their 200-day, the current corrective phase is beginning to look more like a major correction as opposed to a tactical pullback.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8212;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Originally posted 11th March 2025<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By\u00a0David Keller, CMT 1\/ Medium-Term Market Trend Model Turns Bearish 2\/ 5500 Becomes Minimum Downside Target For S&amp;P 500 3\/ Breadth Conditions Continue to Deteriorate Investopedia is partnering with CMT Association on this newsletter. \u00a0The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice. The guest [&hellip;]<\/p>\n","protected":false},"author":186,"featured_media":219818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[14,18,6,8,9,22,23,26,3],"tags":[910,207,262],"contributors-categories":[13686],"class_list":["post-219817","post","type-post","status-publish","format-standard","has-post-thumbnail","category-etfs","category-macro","category-north-america","category-region","category-securities","category-stocks","category-technical-analysis","category-text-articles","category-traders-insight","tag-sp-500","tag-spx","tag-spy","contributors-categories-investopedia"],"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.8) - 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