Technically Speaking – July

August 6, 2025

Long-term Resistance: SP500  6430

Long – Term Support: SP500  6100 then 5700

The markets had another positive month during July. This followed two other strong months in May and June, which were in response to positive trade talks and tariff delays. July did see a sell off, with the S&P dropping 3 days in a row to end the month. This drop was due in large part to a weak jobs report and new tariff news. The July jobs report was much less than expected and the revised figures for May and June were also lower than originally reported. The new round of tariffs was announced on the last day of July, which sparked concern among investors causing a selloff. Even with the negative end to July, the S&P is still near all-time highs. I see the long-term resistance being around 6,430. If the S&P breaks through this then we could see the markets run up as they look for new all-time highs. If investors continue to become cautious in response to economic data and tariff news, then the S&P could fall off. If the S&P turns negative, then I see the first long-term support level at 5,430 and the next support at 4,810.

August and September are historically weak months for the markets. With the markets still near all-time highs, it is not necessarily the time to be ultra-aggressive. If we see a selloff during the next couple months, I believe that it is a buying opportunity. During selloffs, I am a firm believer in buying solid companies with strong earnings and guidance. I do not chase the home run on small, risky companies during this time. The first companies to turn around and run up when market sentiment turns positive after selloffs are the strong companies.

So, for now, continue taking advantage of the high interest rates that money markets are offering while you wait for buying opportunities in the strong companies, whether that is through buying individual stocks or the indices.