S&P 500 Analysis: Near-Term Highs Made As Speculators Look Forward

By Robert Petrucci of Daily Forex

Tuesday, December 9, 2025 8:20 AM EST

The S&P 500 as of this writing within futures market trading is near the 6,864.00 level. Yesterday’s highs touched the 6,896.00 vicinity.

S&P 500 Analysis 09/12: Near-Term Highs Made (Chart)

Since touching a high last Friday of nearly 6,906.00 the S&P 500 has held its higher ground, but still shown an incremental loss of value. As of this writing the S&P 500 is around the 6,864.00 ratio, yesterday’s apex was around 6,896.00. Financial institutions are flirting it appears with optimism, but are still practicing some caution ahead of the Federal Reserve’s FOMC Statement on Wednesday.

The apex high for the S&P 500 was made in late October when the index touched the 6,931.00 vicinity. This past Friday’s high was better than the S&P 500 had traversed in November. Day traders looking to ride on the coattails of large players need to remain careful the next day and a half. Fast trading in the S&P 500 will be seen as investment institutions position themselves before and after the rate decision by the Federal Reserve.

An Interest Rate is Likely Coming

The Federal Reserve via the results of the broad markets including stock indices and Forex is expected to cut the Federal Funds Rate by 25 basis points tomorrow. If the Fed fails to reduce interest rates this would likely cause strong selling and volatility across financial markets. However, U.S economic data regarding inflation has been tame and this justifies an interest rate cut tomorrow. Yet, it is the FOMC Statement outlook which holds the essential impetus regarding what happens after a rate cut is announced.

Since touching the low 6,510.00 vicinity on the 21st of November, investors have shown better sentiment and this is largely based on fuel that the Fed will cut interest rates. The S&P’s choppy price action the past handful of weeks has started to see optimism build via incremental buying. All-time values are once again being talked about, but for October’s apex highs to be toppled investors certainly want more clarity regarding interest rate outlook. Wednesday will provide some answers.

Today and Tomorrow for the S&P 500

Day traders need to understand the S&P 500 could be choppy over the next forty-eight hours. Optimistic bets might be the logical framework for speculators, but risk management will be essential.

Large players will try to position before the Fed announcement based on what they believe the Fed will say via its FOMC Statement.
The word uncertainty could be heard again, but if Jerome Powell suggests the Fed believes inflation is under control and additional rate cuts could happen in the first quarter of 2026, this could ignite buyers of the S&P 500.
Folks need to put their money someplace, if interest rates are believed to be on the way down, large institutions will try to put their money in places that create higher yields – the S&P 500 is one of those places.
But the Fed needs to deliver a dovish sounding FOMC statement tomorrow. Will they?