The market spiked early last week, dipped slightly by Thursday’s close, and then rallied to an even higher high by Friday’s close—surpassing Thursday’s open. This pattern of short-term swings around a steady upward trend is likely to continue throughout the week, with the market hovering near Friday’s levels as it settles into a more typical growth pace.

S&P 500 RSI: 54.28 and oscillating on a downward trend

Since May, the RSI begun to fall and has now reached a brief period of oscillation around 50-60 between this week and the last week. This trend is extremely similar to the one we saw back on 10/06/24, where the RSI climbs to a peak and on it’s way down, has a momentary stretch of oscillation at a value that indicates moderate momentum and price movement.

Given this behavior seen in early October, expect oscillation with a downward trend before beginning the cycle anew.

McClellan Oscillator (S&P 500): 3.13 and green

The McClellan has only been in 3 for the last few days after a momentary week span of red. This matches up perfectly with the RSI as after a period of decline, the market is clearly oscillating with relatively steady growth. How long this oscillation occurs is unknown, but expect this moderate growth to continue into the week ahead.

Expect the McClellan to creep up as the RSI hovers, before they fall back down together.

This Week’s Market Catalysts: Trump vs. Musk

One of the biggest market movers this week is the drama between Trump and Musk. After Musk slammed one of Trump’s recent fiscal policies, Trump fired back by threatening to cut Tesla and SpaceX out of government contracts. That back-and-forth sent Tesla’s stock into a tailspin—dropping around 14% in a single day and wiping out billions in value. The ripple effect hit other tech stocks too, shaking up confidence just as the market was finding its footing. While some investors see this as a dip worth buying, the whole feud is definitely keeping traders on edge.