Technical analysis by WiseLeoTrading about Symbol SPYX: Buy recommendation (10/22/2025)

US500 Snapshot US500 is exhibiting a clear bullish trend, pushing to new all time highs above 6,740. Strong momentum is driven by robust corporate earnings, particularly from large cap technology stocks, and prevailing bullish investor sentiment. Key Drivers and Catalysts: Earnings Strength: Resilient corporate earnings, particularly within the "Magnificent 7" mega cap technology stocks, remain the primary engine for the index's upside. Sticky Inflation & Fed Policy : Persistent inflation in the services sector is injecting selective caution but reinforcing the appeal of strong, high growth companies. With expectations elevated for the US Fed to cut rates to protect a weakening US Jobs market further supporting the index. Political Policy Influence: The forward outlook is being shaped by economic policy prospects, notably potential tariffs and tax changes under President Trump's administration. Outlook: Key Risks & Levels: The general consensus among major financial institutions is for further growth towards year end, with targets ranging from the conservative 5,700 to the bullish 7,100. The prevailing scenario is a continuation of the upside toward the next major resistance level near 6,800. While continued earnings expansion and a relatively stable macro backdrop support single digit growth expectations, the outlook is tempered by key risks: High Valuations: Elevated index valuations could limit aggressive buying. Macro/Policy Risks: Moderate volatility is expected around upcoming inflation and interest rate data. Furthermore, ongoing uncertainties related to trade and policy (e.g., the tariff debate) pose a risk to sentiment. Analysis by Terence Hove, Senior Financial Markets Strategist at Exness