SPY Trends and Influencers December 27, 2025

• Posted by Greg Harmon
• on December 27th, 2025

Last week, the review of the macro market indicators saw with the December Quad Witching in the books, equity markets showed some strength at the end of the week to stop the drop. Elsewhere, looked for Gold ($GLD) to continue the uptrend and challenge the all-time high while Crude Oil ($USO) held lower on the verge of shifting to a downtrend. The US Dollar Index ($DXY) continued the short term drift to the upside in consolidation while US Treasuries ($TLT) continued in consolidation and looked better lower. The Shanghai Composite ($ASHR) looked to continue the pause in the uptrend after some digestion from the 10 year highs while Emerging Markets ($EEM) held up in their uptrend.

The Volatility Index ($VIX) looked to continue to hold in the normal range making it easier for equities to move higher. The charts of the $SPY, the $IWM and the $QQQ looked strong on the longer timeframe, with the IWM leading. On the shorter timeframe the SPY, the QQQ and the IWM looked to have weathered the storm and might be ready to start higher again.

The week played out with Gold rocketing to new highs while Crude Oil continued to hold at the bottom of a consolidation channel. The US Dollar drifted lower while Treasuries fell back in consolidation. The Shanghai Composite moved back higher in the consolidation of the uptrend while Emerging Markets followed suit rising as well.

Volatility dropped to levels not seen in over 1 year. This set the stage for equities to rise and saw the SPY set new all-time highs. The QQQ moved higher as well, approaching the early December highs, while the IWM saw a small move higher Monday evaporate the rest of the week. What does this mean for the coming week? Let’s look at some charts.

SPY Daily, $SPY

The SPY came into the week finding support after pulling back from an all-time high. It started higher Monday and continued, printing a new all-time high Wednesday, before a light session Friday that saw little change. The RSI is rising in the bullish zone with the MACD curling up and positive.

The weekly chart shows a small body candle breaking over resistance and out of the range since late September. The RSI is holding in the bullish zone with the MACD drifting lower and positive. There is support lower at 689.50 followed by 685 and 680 then 676.50 and 674 before 670 and 667. There is resistance above at 691.50. Uptrend.

SPY Weekly, $SPY

With the shortened Christmas week in the books and just 3 trading days left in the year, equity markets showed mixed strength with the SPY and QQQ rising while the IWM drifted lower. Elsewhere, look for Gold to continue the uptrend at new all-time highs while Crude Oil holds at the bottom of consolidation on the verge of shifting to a downtrend. The US Dollar Index continues the short term drift to the downside in consolidation while US Treasuries continue in consolidation and looking better lower. The Shanghai Composite looks to continue the sideways motion in the uptrend while Emerging Markets march in place in their uptrend as well.

The Volatility Index looks to continue to hold low in the normal range making it easier for equities to move higher. The charts of the SPY, the IWM and the QQQ look strong on the longer timeframe, with a shift to the large cap SPY leading now. On the shorter timeframe the SPY, the QQQ and the IWM look to have weathered the pullback and are ready to move higher again with the SPY heading the charge. Use this information as you prepare for the coming week and trad’em well.

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