Contradiction: Expanded market size yet persisting vulnerability
In the laid-back, insightful discussions of the HSBC Daily Trading podcast, Jörg Scherer, the savvy Head of Technical Analysis at HSBC, dives into the ever-evolving financial market. This week's episode brings the spotlight onto the S&P500.
Now, let's delve into the intriguing curveballs presented in this episode. Scherer tackles a peculiar situation surrounding the S&P500, with a focus on the "Glorious 7" - a notable group of tech titans. Historically, these powerhouses played a significant role in driving the S&P500's performance. Yet in 2025, contrary to general market trends, these stocks have taken a tumble, leaving us in a complex conundrum.
However, here's a twist in the tale. Nearly half of the S&P 500 index members are shattering expectations, diverging from the index's performance off-kilter. This entire scenario has created a striking paradox where the overall index performance seems weak, yet a substantial portion of its constituents are flourishing.
In addition to these intriguing insights, Scherer took the chance to discuss pressing chart patterns and time-honored trading methodologies that are of crucial importance in deciphering the current state of the S&P 500. He emphasized the significance of being vigilant and adaptable in the market, emphasizing the importance of being prepared, rather than always being right[1][2][3].
- Jörg Scherer, during the podcast discussion, highlighted the paradoxical situation in 2025, where the S&P500, despite having top tech giants like the "Glorious 7" underperform, has a substantial portion of its constituents performing unusually well, which is opposite to the general market trends.[1]
- Scherer, in the HSBC Daily Trading podcast, explored various topics, including the S&P500's performance and the unexpected success of nearly half of its index members, despite the weak overall index performance, a scenario that can be classified as a financial paradox.[2]
- In contrast to the overall decline of the S&P500, some of its member stocks, including those from the tech sector, associated with the "Glorious 7," have been supported by HSBC's Head of Technical Analysis, Jörg Scherer, further highlighting the complex paradox in the financial market.[3]
