MomentumOptions.com Pre-Market Update for 12/8/2025
Small-Caps Just Miss Fresh High
The stock market showed continued strength last week to erase the November losses while positioning the major indexes for another round of fresh all-time peaks. The small-caps came the closest to setting a record high but pulled back on an otherwise bullish session to finish out the week.
The Nasdaq made a push to 23,680 before ending at 23,578 (+0.3%). Resistance at 23,750 held. Support is at 23,250.
The S&P 500 closed at 6,870 (+0.2%) with the high reaching 6,895. Resistance at 6,900 was challenged and held. Support is at 6,850.
The Dow topped out at 48,113 before finishing at 47,954 (+0.2%). Resistance at 48,000 was cleared but held. Support is at 47,750.
Earnings and Economic News
Before the open: China Online Education (COE)
After the close: Mama’s Creations (MAMA), Ooma (OOMA), Toll Brothers (TOL)
Economic News
None
Technical Outlook and Market Thoughts
For the week, the Nasdaq and the Russell gained 0.9%. The S&P rose 0.3% and the Dow was up 0.5%. Year-to-date, the Nasdaq has rallied 22.1% and the S&P has jumped 16.8%. The Dow is higher by 12.7% and the Russell has soared 12% for 2025.
The follow thru with higher highs last week and above key resistance levels was an ongoing bullish signal after the Thanksgiving week rally. The ongoing strength puts the major indexes within striking distance of fresh all-time highs with this week’s Federal Reserve meeting likely dictating the trend into yearend.
The Fed will likely cut interest rates while updating their economic projections and the dot plot, which represents the best estimate of where the committee sees interest rates heading over the longer-term.
If the Fed doesn’t cut rates, for political reasons or says it needs more data since the government was shut down, the market will selloff. We also wouldn’t be surprised to a sell-the-news event.
The Russell 2000 traded up to 2,540 on Thursday while missing the all-time high at 2,541 from October 15th by just over a point. Friday’s high of 2,538 and close back below 2,525 was a disappointment. Continued closes above 2,550 could lead to blue-sky territory towards 2,600-2,650. The current rally represents nearly a 10% gain from the November 20th low at 2,303.
New support is at 2,500-2,475. Closes below 2,450 and the 50-day moving average would indicate a near-term top with weakness towards 2,425-2,400.
The Nasdaq closed above 23,500 for the second-straight session and is up 8% from the November 21st bottom at 21,898. Lower resistance is at 23,750-24,000. Multiple closes above the latter could lead to momentum towards 24,500-25,000.
Support is at 23,250-23,000. A drop below the latter and the 50-day moving average would be a renewed bearish signal with retest potential down to 22,750-22,500.
The S&P 500 held 6,850 for the second-straight day to keep 6,900-6,950 and fresh all-time highs in focus. Our raised Price Target from October 3rd is at 7,000 with the index up over 5% off the November 21st low of 6,521.
Support is at 6,800-6,750. Closes back below the latter and the 50-day moving average would imply a near-term top with further fade potential down to 6,700-6,600.
The Dow cleared key resistance at 48,000 on Thursday and Friday but a level that held into the closing bell. Closes above this level and the November 12th all-time high at 48,431 would suggest ongoing upside to 49,000-50,000. The index is up 5% from last month’s low at 45,728.
Support is at 47,750-47,500. Closes below 47,250-47,000 and the 50-day moving average would indicate a further slide to 46,750-46,500.
The Volatility Index (VIX) tagged a multi-month low of 15.28 while closing below upper support at 15.50-15. We said these levels need to be recovered last week and ahead of the Fed meeting. Closes below the latter should get 13.50-12.75 and last December lows in play.
Closes above 17-17.50 would be a warning signal for the market. The 50-day moving average is at 18.50 and the 200-day moving average is just below 20 with both flatlining at the current moment. Closes above these levels would be a bearish development for the market and likely get them in a downtrend.
Oracle (ORCL) announces earnings after Wednesday’s close and could also weigh on market sentiment this week. Shares are down 37% from the September 10th high north of $345. The options market is pricing in a possible 8%-10% move in the stock.
Futures were high Sunday evening as we went to press. Nasdaq futures were up 55 points; the Dow and S&P 500 futures were both higher by 10 points; and the Russell futures up a 6-pack.
Momentum Options Alerts Update
Closed Momentum Options Trades for 2025: 50-15 (77%, 17 triple-digit winners) / 2024: 77-17 (82%, 38 triple-digit winners). Please remember, all “Exit Targets” and “Stop Targets” are targets. You should not have any “Stops” entered to close any alerts or “Limit Orders” in your brokerage account unless we list one. We will send out an “Alert” or “New Alert” if we want you to close a position or if a new position comes out. Otherwise, follow instructions at all times in the updates on Monday’s and Thursday’s along with Text Alerts and videos throughout the week.
Lumen Technologies (LUMN, $8.26, down $0.52)
Option: LUMN January 11 calls
Expiration Date: January 16th, 2026
Entry Option Price: $0.50 (12/3/2025)
Current Option Price: $0.30
Exit Target: $1.00
Return: -40%
Stop Target: None
Action: Shares traded to a low of $8.17 with prior and upper support at $8.25-$8 getting tripped but holding. A drop below the latter and the 50-day moving average would be a bearish signal. Resistance is at $8.75-$9.
Our near-term target is at $11.50-$12. There is breakout potential toward $16 based on the Fibonacci setup. The current bullish setup would be voided if $7.50 fails to gold with the Fibonacci Stop at $5.13.
Pfizer (PFE, $26.03, up $0.33)
Option: PFE January 27.50 calls
Expiration Date: January 16th, 2026
Entry Option Price: $0.22 (12/2/2025)
Current Option Price: $0.29
Exit Target: $0.50
Return: 64%
Stop Target: 25 cents (Stop Limit)
Action: Set a Stop Limit at 25 cents.
Friday’s peak hit $26.12 with lower resistance at $26-$26.25 getting topped but holding. Support is at $25.25-$25 and the 50-day moving average.
Closes above $26.50 would be bullish for a quick trip to $27.50. We think there is breakout towards $30 during the first quarter of 2026.
MGM Resorts International (MGM, $36.07, up $0.68)
Option: MGM January 28 puts
Expiration Date: January 16th, 2026
Entry Option Price: $0.60 (11/20/2025)
Current Option Price: $0.15
Exit Target: $1.20
Return: -88%
Stop Target: None
Action: Key resistance at $36 was cleared and held with Friday’s peak at $36.81. Support is at $35.25-$35.
We will likely hold this Alert into yearend before exiting to save any remaining premium.
Rani Therapeutics (RANI, $1.59, up $0.02)
Option: RANI December 5 calls
Expiration Date: December 19th, 2025
Entry Option Price: $0.25 (11/5/2025)
Current Option Price: $0.10
Exit Target: $0.50
Return: -60%
Stop Target: None
Option: RANI April 5 calls
Expiration Date: April 17th, 2026
Entry Option Price: $0.38 (11/5/2025)
Current Option Price: $0.20
Exit Target: $0.80
Return: -47%
Stop Target: None
Action: Lower resistance at $1.75-$2 held with the high at $1.67. Support is at $1.25-$1.
Rani Therapeutics had no revenue until this year and in its latest earnings update it reported a better-than-expected loss but no revenue. The company is developing a proprietary oral delivery technology intended to enable drugs that are injected, to instead be taken orally. They signed a $1 billion deal with Chugai Pharmaceutical in October. This could mean NO MORE SHOTS for many drugs. Any update or approval could send shares zooming
