6 Must-Watch Stock Market Charts for 2025: A Technical Expert's Perspective

As we approach the end of 2024 and look ahead to 2025, technical experts are keeping a close eye on several key stock market charts to identify trends and make informed investment decisions. Here are six crucial charts that will be under scrutiny in the coming year, based on the latest data and market dynamics.

1. S&P 500 Index (SPX): The broad-based S&P 500 index is a vital indicator of the overall health of the U.S. stock market. In 2024, the index gained 27% (as of this writing), marking another strong year for equities. As we enter 2025, technical experts will be monitoring the SPX to gauge market sentiment and identify potential trends. Keep an eye on key moving averages, such as the 50-day and 200-day Simple Moving Averages (SMAs), as well as support and resistance levels, to assess the market's momentum and potential reversals.
2. iShares S&P 500 Value ETF (IVE) vs. iShares S&P 500 Growth ETF (IVW): The relationship between value and growth stocks has historically been a mirror image of oil prices. As value underperforms growth, low oil prices accommodate easier and more flexible business environments. Conversely, as value starts to outperform, it is typically due to high oil prices that make large-cap stocks with economies of scale more attractive. Technical experts will be watching the spread between these two ETFs to determine the market's preference for value or growth stocks and the potential impact on oil prices.
3. Energy Select Sector SPDR Fund (XLE): The energy sector is expected to be a key area to watch in 2025, as the economy picks back up on new interest rate cuts. The Energy Select Sector SPDR Fund (XLE) tracks the performance of the energy sector and will be closely monitored by technical experts. Keep an eye on the fund's price action, moving averages, and support/resistance levels to identify potential trends and opportunities in the energy sector.
4. iShares MSCI China ETF (MCHI): A lower dollar will raise the price of any stock or commodity quoted in dollars, directly favoring Chinese stocks. The iShares MSCI China ETF (MCHI) provides exposure to the Chinese equity market and will be under scrutiny by technical experts in 2025. Monitor the ETF's price performance, moving averages, and support/resistance levels to assess the potential impact of a lower dollar on Chinese stocks.
5. VIX (CBOE Volatility Index): The VIX, or "fear gauge," is a popular measure of market volatility based on S&P 500 index options. Technical experts will be closely watching the VIX in 2025 to gauge market sentiment and identify potential corrections. A rising VIX could signal that investors are becoming more anxious about market conditions, while a low VIX may indicate complacency. Keep an eye on the VIX's price action and its relationship with the S&P 500 to assess market volatility and potential reversals.
6. Yield Curve (2-year and 10-year Treasury yields): The yield curve, specifically the 2-year and 10-year Treasury yields, can provide valuable insights into the economy's health and potential interest rate changes. An inverted yield curve, where long-term yields are lower than short-term yields, has historically been a leading indicator of a recession. Technical experts will be monitoring the yield curve in 2025 to assess the potential impact on stock market performance and make informed investment decisions.



By keeping a close eye on these six crucial charts, technical experts can gain valuable insights into market trends, sentiment, and potential opportunities in 2025. Stay informed and adapt your investment strategy accordingly to capitalize on the coming year's market dynamics.