7/14 Bearish. 200 Buying | 260 Selling.
% Stocks Over 50SMA is Bearish – Overbought. Primary Indicator is Neutral. 20% Weekly is Bullish – Caution.
The market closed softer amid tariff fears, with initial selling fading as mega-caps like NVDA, AMZN, and TSLA led a modest rebound. Tariff announcements on Canada and the EU weighed on sentiment, but broad-based profit taking was met with resilience. Treasury yields rose, reflecting inflation concerns and a steepening curve, while volatility (VXX) ticked higher, signaling increased market caution.
Energy and Consumer Discretionary sectors showed relative strength, with energy benefiting from rising crude prices and consumer discretionary supported by mega-cap gains. Defensive sectors like Utilities and Health Care gained modest traction amid sector rotation. The week ahead features key economic data including June CPI, PPI, Retail Sales, and major bank earnings, which could drive directional moves.
Key Takeaway:
Traders should remain cautious given tariff-related uncertainty and rising volatility. Focus on mega-cap leadership for potential continuation plays, while respecting overhead resistance and support levels. Avoid chasing breakouts without volume confirmation; instead, watch for clear momentum shifts in resilient sectors like Energy and Consumer Discretionary. Manage risk tightly ahead of next week’s key economic catalysts.
Watchlist
Continuation: REGN (S1: 565, S2: 563, S3: 560, R1: 570, R2: 575, R3: 580)
Anticipation: TSLA (S1: 310, S2: 308, S3: 306.5, R1: 315, R2: 317.5, R3: 320)