S&P 500 Daily Update for Tuesday July 8, 2025

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Market Summary for Monday, July 7, 2025:
Outlook for Tuesday, July 8, 2025:
Monday Market Recap:
Market Pullback: The S&P 500 experienced a pullback, declining 0.79% and giving up much of Thursday’s gains. The S&P 500 opened lower at 6256 (near S1), fell below S2 (6252) to 6200, and closed slightly below S2. Support held at the psychological 6200 level.
Sentiment and Volume: Sentiment remains high at 75 (down from 78), still in extreme positive territory. Volume was below average, typical for summer months.
Technical Indicators: The market remains positive across short, intermediate, and long-term time frames. A golden cross in the S&P 500 persists. However, some short-term indicators (e.g., Stochastic RSI, CCI 14) are no longer extreme, and others (e.g., Williams %R, CCI 20) remain elevated but declining.
Interest Rates and Dollar: The 10-year yield rose to 4.39% (from 4.35%), nearing the 4.5% level to watch. The dollar ticked up slightly but remains oversold, potentially pressuring stocks if it strengthens.
External Factors: Tariff news (25% tariffs on Japan and South Korea effective August 1) and OPEC’s plan to increase oil production (yet oil prices rose) were notable. The July 9 tariff deadline looms.
Sector Performance: Tech and communication led growth, while discretionary weakened. Utilities were the only sector up, with staples less down than others. Tesla fell sharply (-6.79%).
Tuesday Outlook:
Economic Data: Light day with only consumer credit data expected, unlikely to be a major market driver.
Geopolitical and Policy Factors: Watch for developments on tariffs (July 9 deadline), FOMC meeting minutes (Wednesday), and upcoming bond auctions and jobless claims reports later in the week.
Seasonality: Positive seasonality continues for the first half of July, historically the strongest period for the S&P and NASDAQ.
Technical Outlook: The market remains positive despite the pullback. The S&P is above key moving averages, with higher highs and lows intact. Pivot points for Tuesday are wide due to Monday’s volatility. Growth-to-value ratios and bullish percent indexes (S&P, NASDAQ 100) remain positive, with some indicators showing slight declines but still above key levels.
Key Levels: Monitor 6200 (support) and 6250 (resistance) as psychological round numbers. The long-term trend line may pose resistance for the NASDAQ.
Conclusion:
The S&P 500 remains positive across all time frames, with no significant damage from Monday’s decline. Positive seasonality and technical strength support a bullish outlook, but tariff news, rising yields, and a potential dollar bounce warrant caution.

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DISCLAIMER This video is for entertainment purposes only. I am not a financial adviser, and you should do your own research and go through your own thought process before investing in a position. Trading is risky!