Markets rarely move in straight lines—and the last few weeks have been a textbook reminder of that.
After pressing to new highs, the S&P 500 (SPY) finally experienced a healthy pullback. This wasn’t a breakdown. In fact, it was a move we had been anticipating. Key daily divergence, and even the potential for monthly divergence, began to appear as momentum slowed. That loss of upside pressure ultimately pushed RSI into oversold territory—often a signal that a turning point may be close.
That turning point has now arrived.
As RSI reset and selling pressure eased, SPY found support and reversed back to the upside. From a technical perspective, this is exactly how strong markets tend to behave: brief pullbacks to relieve excess momentum, followed by renewed advances. Traders who understand this rhythm are often better positioned to avoid emotional decisions during short-term weakness.
However, technicals are only part of the equation.
We’re still awaiting a Supreme Court decision on tariffs, and that uncertainty has the potential to inject fresh volatility into the market. Tariff rulings can have wide-ranging implications—impacting inflation expectations, global trade relationships, and sector-level performance. Markets don’t like unknowns, and until clarity emerges, traders should expect sharper moves and faster reactions to headlines.
So what does this mean going forward?
In the near term, the upside trend remains intact, but volatility may increase as news catalysts collide with stretched price levels. This is the type of environment where discipline matters most—where patience, defined risk, and selective trade setups tend to outperform aggressive overtrading.
In this week’s FFR Trading Market Minute, we break down:
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What the RSI reset is signaling now
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Key levels to watch on SPY
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How tariff uncertainty could impact volatility
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What traders should focus on as conditions evolve
Markets are offering opportunity—but only to those willing to respect both risk and uncertainty.
👉 Get the full analysis in this week’s Market Minute.