S&P 500 Index

Research Notes October 2025 > https://www.unum.capital/post/roct2025

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The S&P 500 is exhibiting extreme bullish momentum, but this strength comes with a high risk of a near-term correction. The index has surged into OVERBOUGHT territory on short-term indicators, while ultra-short-term metrics show HIGH BULLISH MOMENTUM. This dual signal of intense buying pressure coupled with an overbought reading strongly suggests a profit-taking pullback is imminent. While the underlying mid and base-term trends remain firmly in the Strong tier, confirming the market's structural health, traders should be prepared for significant short-term volatility and a test of support as the current aggressive rally becomes overextended.

Lester Davids

Senior Investment Analyst: Unum Capital