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Investors are focused on the possible extension of the stock market’s bull rally into 2025.
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Wall Street experts highlighted the most important stock charts to watch next year.
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From interest rates to software stocks, here’s what Wall Street’s top technical experts are watching.
After back-to-back strong years for the stock market, investors are obsessed with whether the bull rally will extend into 2025.
To get a better idea of what investors should watch for next year, Business Insider reached out to Wall Street’s top technical experts and asked them: What’s the most important stock market chart heading into 2025?
From interest rates to software stocks, here’s what they’re watching.
Will Tamplin, Fairlead Strategies
“In December, the S&P 500 Index (SPX) nearly hit a measured move projection of 6,118, which was forecast for a breakout in the first quarter of this year. The measured move projects the 2020-2021 uptrend from the low of 2022. This indicates that an extended period of consolidation is likely in the first half of 2025. The monthly MACD histogram suggests that the momentum behind the uptrend has started to decline in the fourth quarter. Further supporting corrective price action beyond 2025,” Will Tamplin, senior analyst at Fairlead Strategies, told Business Insider.
Ryan Detrick, Carson Group
“Bull markets are like cruise ships: Once they get moving, they can be hard to stop. Fifty years ago, once a bull market reached its third year, history said there could be much more to go. In fact, the “The five most recent bull markets to get here lasted at least until their fifth birthday, with an average gain of eight years, so don’t give up on the bull market yet in 2025,” said Ryan Detrick, chief market strategist. of Carson. The group told Business Insider.
Craig Johnson, Piper Sandler
“The 10-year US Treasury yield has reversed a long-term secular bearish trend from the 1981 highs. The high above 3.25 (2018 highs) also validates the multi-decade reversal. Historically, after bullish or bearish trend changes, a retest typically occurs,” Craig Johnson, chief market technician at Piper Sandler, told Business Insider.
He added: “We suspect that this pullback/pullback to previous resistance will find support around 3.00% – 3.50% in the second half of 2025. A decisive break below that level would suggest that the economy is in serious trouble. “Until then, let’s not forget that the Fed’s slow and moderate rate cuts have historically been positive for stocks, especially small and mid-cap stocks.”
Ari Wald, Oppenheimer