7/16 Lines After Dark
Still Navigating 6260
Lines After Dark
Midweek Market Update – July 16, 2025
What a funny session today. The market had a morning sell off on speculation that President Trump was going to fire Fed Chair Jerome Powell. Trump later clarified he would not and the market rallied to close the day green.
As the market trades near all time highs, I don’t know where this rally tops. 6300, 6500, 7000— I’ve read some speculation up to 8000. I have no clue. What I do know is that once the S&P 500 starts to close below 6180, the probability for downside risk begins to increase. If breadth goes negative and momentum remains down it becomes an alarm. My strategy respects the risk-off alarm and positioning begins to shift to defense. This is the way I am navigating the market as the index trades at record highs.
Through mid week there are a handful of positive technical observations to make note of.