S&P 500 Rally Extends: Can Market Continue Rallying Despite Tariff Concerns?

Paul-Rejczak Paul Rejczak Mar 25, 2025

Will stocks continue their rally today?

Stocks rallied on Monday, with the S&P 500 closing 1.76% higher after opening with a gap up. The index reached its highest level since March 7, retracing its recent declines.

This morning, the S&P 500 is expected to open 0.3% higher, likely extending the short-term uptrend.

Investor sentiment remains bearish, as shown in last Wednesday’s AAII Investor Sentiment Survey, which reported that 21.6% of individual investors are bullish, while 58.1% of them are bearish.

The S&P 500 has broken above its downward trend line, as we can see on the daily chart.

S&P 500 Rally Extends: Can Market Continue Rallying Despite Tariff Concerns? - Image 1

 

S&P 500 Futures Contract Extends Its Advance

This morning, the S&P 500 futures contract is extending yesterday's advance, breaking slightly above its local high. Potential resistance is at 5,880-5,900, marked by previous highs, while support is around 5,760, marked by the recent highs.

S&P 500 Rally Extends: Can Market Continue Rallying Despite Tariff Concerns? - Image 2

 

Conclusion

Stocks are likely to extend their short-term advance this morning. The market rebounded sharply yesterday; however, this currently appears to be an upward correction following the decline that began on February 19 and exhausted on March 13.

For now, my short-term outlook is neutral.

I think that no positions are justified from the risk/reward point of view.

Here’s the breakdown:

  • The S&P 500 is likely to retrace more of its recent declines today.
  • The market still appears to be in a correction rather than a new uptrend.
  • In my opinion, the short-term outlook is neutral.

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Thank you.

Paul Rejczak,                                                                        
Stock Trading Strategist