Market Outlook Ahead of the Fed Decision with Steven Sitkowski | Market Mastery Group Insights
- MMG Team
- Dec 9, 2025
- 4 min read
As the market moves deeper into the final weeks of the year, Steven Sitkowski from the Market Mastery Group offers a clear and timely perspective on what traders should be watching. With the Federal Reserve preparing to release its next policy decision, momentum, sentiment, and sector behavior are aligning in ways that could influence the market’s direction into the new year.
The Fed Takes Center Stage: What Traders Should Expect, According to Steven Sitkowski
The most important storyline is the upcoming Federal Reserve announcement. Markets have assigned a high probability to a rate cut, but as Steven Sitkowski points out, the press conference following the decision may prove even more influential.
What Chairman Powell says about the labor market, inflation progress, and economic expectations will likely guide market sentiment and shape trading decisions in the short term. Traders inside Market Mastery Group stay especially focused on Powell’s language, as subtle shifts in tone often signal future policy changes.
Inflation Trends Give the Market Breathing Room
Recent inflation data has been encouraging. The core PCE reading showed a slight but meaningful decline, reinforcing the idea that price pressures are easing. This helps explain why equities continue to hold their strength and why the Fed may feel comfortable adjusting policy.
Even as rate expectations shift, the 10-year Treasury yield has moved slightly higher. According to Steven Sitkowski, yields at these levels remain acceptable for equity investors and do not threaten the ongoing uptrend.
Market Breadth Remains Moderately Bullish
Market participation showed a mix of leaders and laggards across different exchanges, but the overall tone remains healthy. New highs still outpaced new lows, suggesting that momentum continues to favor the upside. The NASDAQ, with its heavy tech exposure, showed particularly strong participation.
The market appears to be pausing rather than weakening, a common pattern ahead of major economic announcements.
Tech Strength Continues While Defensive Sectors Falter
Technology stocks continued to display resilience, while defensive sectors such as healthcare and utilities struggled. This shift indicates rising investor confidence and a willingness to seek higher-growth opportunities.
Expectations for the so-called Magnificent 7 remain strong, with projected earnings growth far outpacing the rest of the market. Steven Sitkowski notes that concerns about an AI bubble are misplaced; innovation and earnings are clearly centered in these companies, and their performance reflects that reality.
AI adoption continues to accelerate at a speed rarely seen in modern markets. Its trajectory resembles the early stages of the smartphone and internet booms, reinforcing the long-term potential of companies leading this space.
Market Concentration Hits Historic Levels
One of the more remarkable developments is the growing concentration within the S&P 500. The top ten companies now represent an unusually large portion of the index’s total value and earnings. This underscores where institutional money is flowing and why understanding market leadership is essential for traders.
Weekly performance leaders reflect a blend of semiconductor names, retail stocks, and consumer discretionary companies. Although the mix was broad, technology remains a consistent driver of strength.
Investor Sentiment Improves as Markets Approach Highs
After a period of cautiousness, investor sentiment has begun to shift. Bullish responses in recent surveys rose significantly, while bearish views declined. With the market hovering near its highs, this shift is a natural reaction to improved economic data and steady market performance.
SPY Chart Review: Consistent Strength in an Upward Trend
The SPY continues to trade above its rising 50-day moving average, a sign of steady institutional support. Pullbacks remain normal and controlled, and the overall structure shows a market that has climbed methodically with only brief interruptions.
Steven Sitkowski notes that the market is likely in a holding pattern until the Federal Reserve delivers its announcement. Once that occurs, and especially after Powell speaks, greater clarity and potentially new opportunities should emerge.
Final Thoughts from Steven Sitkowski | Market Mastery Group
As traders await the Federal Reserve decision, patience and awareness are key. Market Mastery Group members learn to focus on structure, trends, and sector movement rather than speculation or emotional reactions.
With markets near their highs, easing inflation, and technology leadership firmly intact, the environment remains constructive, though sensitive to the Fed’s next move.
Steven Sitkowski will return with a full breakdown once the announcement and press conference have taken place. Until then, stay focused, stay disciplined, and trade with intention.
If you want to deepen your understanding of market structure, sharpen your timing, and learn how to apply the strategies Steven Sitkowski teaches each week, now is the perfect time to join our Free Live Stock & Options Training. This session is designed for traders who want a clearer, more confident approach to the markets, whether you're just getting started or refining your current strategy.
Reserve your spot and start learning directly from the Market Mastery Group’s proven educational framework.
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