Sometimes, there’s nothing like a good ole’ fashioned chart review to end what has been quite a busy last 30 days.

Sometimes, there’s nothing like a good ole’ fashioned chart review to end what has been quite a busy last 30 days. After all, changes in overall technical pictures drive our investment decisions and ultimately our longer-term view of the markets at any point in time. Action off of 2025 lows was nearly just as swift as said action to those lows at the start of April- and while the S&P 500 is still off roughly 3.55% so far in 2025 recent action does leave major markets in quite an interesting position as we move through May.

Starting broadly, the “average” S&P 500 stock has fared respectively well in 2025’s choppy market environment. Off roughly 1.5% this year, SPXEWI has marched back into a positive trend after breaking a triple top buy signal at 6750. The trend break certainly stands as a constructive move, but there is some continued sign for somewhat cautious optimism. A range of resistance stands in the way of all-time highs at 7600, and interested parties should watch resistance at 7100 to 7400 in the near term. It goes without saying that a productive average stock bodes well for a market that is trying to claw its way back to even on the year. Keep an eye on participation indicators (^TWSPX, ^BPSPX) which may help the astute investment manager peak underneath the hood of market action. The Dow Jones Industrial Average (.DJIA) also broke back into a positive trend with market action on 5/8. Market action here has been similarly productive, posting a string of three consecutive buy signals off 2025 lows. Similar to SPXEWI, it has plenty of resistance above as it looks to get back in the black for 2025.

Another key battleground is the small cap space. The group has been a relative laggard for quite some time, having fallen roughly 9% so far in 2025, the group has taken downside action on the chin this year and was one of the only major areas of the market to not convincingly establish new all-time highs. While reaching 2460 on its default chart in late 2024, the group quickly fell out of bed as it journeyed to levels not seen since late 2023 with April’s exhale. Regardless, recent rally action has been productive as RUT has posted four consecutive buy signals on its default chart, breaking back to a positive trend in the process. While upside action from the group would certainly be productive, the chart below zooms out to a 50-point chart, highlighting quite an interesting point of resistance at the 2000 mark. On this chart, the group maintains a negative trend- something to keep in mind as you look for opportunities in the small cap space. Upside action has been swift, but longer-term damage has been done to the space and participation is still quite weak underneath the hood. Exercise extreme caution, and consider setting price alerts on charts to be notified when chart action crosses notable points.