Schaeffers Investment Research·2025-11-03 14:16Core Insights - The Federal Open Market Committee (FOMC) lowered the fed funds rate by 25 basis points and announced the end of quantitative tightening on December 1 [2] - U.S.-China trade talks resulted in a year-long truce between President Trump and President Xi Jinping, which positively influenced market sentiment [2][3] - Major tech companies reported earnings with mixed reactions; Meta Platforms and Microsoft faced significant negative impacts, while Alphabet and Amazon had positive responses [2] Market Trends - The S&P 500 Index (SPX) closed at 6,840.20, remaining above its rising 30-day and 50-day moving averages, indicating bullish control despite a slight dip [2][3] - The SPX has been moving higher in a defined channel, with higher lows since May 23 and higher highs since early July, suggesting a stable upward trend [4][9] - The current bullish channel's lower boundary is around 6,730, with the first level of potential support at 6,760 [10] Resistance and Support Levels - The upper boundary of the current channel is projected to be at 6,997 by the end of the week, just below the significant 7,000 level, which has heavy call open interest [11] - The previous SPX high of 6,920 is identified as the first level of potential resistance [11] Earnings Season Impact - The ongoing earnings season could lead to drastic company-specific stock movements, with companies like Advanced Micro Devices and Palantir Technologies potentially influencing cap-weighted indices [12] - Short interest on SPX component stocks remains near multi-year highs, which, combined with the SPX reaching an all-time high, supports a long-term bullish outlook [13]