S&P 500 Update 5 November 2025

Price dives below support

Sentiment has soured dramatically in the last few days as banks continue to use the FED’s Repo Facility, credit markets are breaking and the AI trade may have topped. That’s said, the fall wasn’t that big and we’d want price to confirm before reconsidering the trend higher.

However a lot of market participants, as well as retail investors, are expecting the FED to add liquidity in some form or other. Looks like Trump/Treasury won’t help out despite a $1T in the Treasury General Account. They need rates significantly lower and this is their leverage with the FED.

FOMC member Daly was on the wires overnight talking 50bps in December, along with Miran. Powell’s time has come.