SPX officially makes new all-time highs… Now What? Array ( [cookie] => ff40c2-92de9e-70e5bd-2996d6-c30401 [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 2 [max_usage_crypto] => 2 [lock] => 1 [message] => [error] => [active_member] => 0 [subscriber] => 0 [role] => [visitor_id] => 210734 [user_id] => [reason] => [method] => ) 1 and can accesss
Short-term trends are bullish while market breadth has improved this week, given the broadening out in sector performance to help relieve Technology. SPX has now officially joined NDX back at new all-time highs, while both DJIA and RSP have achieved minor breakouts, which keep their own trends bullish and extending higher. Given the broadening out in the US Stock market this week, the lack of counter-trend exhaustion and ongoing subdued sentiment, my view is that the push to new all-time highs will prove difficult to fade right away. Bond yields could very well diverge from the US Dollar’s weakness and bounce into mid-July as the Yield curve starts to re-steepen. Meanwhile, precious metals likely begin to turn back up in July, and Gold should push back to new all-time highs. Overall, I don’t sense that markets show much stalling out until after the Independence Day holiday, and even on a minor dip post 7/4, it’s likely that July should mirror the historically bullish seasonality trend in post-Election years that’s been working thus far in 2025. This calls for July strength in Equities, which might not show much consolidation until the month of August, which might prove more important.
The key takeaway of this past week is that not only did $SPX achieve new all-time highs, but did so on expanded leadership from many important sectors like Financials and Industrials, with the DJ Transportation Average having made a short-term breakout which should be helpful for this leading index going forward.
New all-time highs as breadth expands is typically quite bullish and doesn’t suggest it’s right to attempt to fade this move back to new highs right away.


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