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Stock Market Weekend Update Saturday July 26, 2025

  • Jul 26, 2025
  • 3 min read

Stock Market Weekend Update Saturday July 26, 2025 Short- to Mid-Term Market Outlook: Broadening Rally Fuels Bullish Momentum In the near to medium term, technical market indicators signal a constructive outlook for U.S. equities, with continued upside potential for the S&P 500 (SPX) as market breadth improves. Both the Dow Jones Industrial Average (DJIA) and the equal-weighted S&P 500 are approaching record highs—levels they may eclipse as early as the coming week—underscoring renewed investor confidence and broader participation across sectors.


The Information Technology sector remains the primary engine of recent market strength, ranking as the best-performing sector across multiple time horizons—week-to-date, month-to-date, quarterly, and semiannually. However, the recent relative outperformance of cyclical sectors such as Financials and Industrials has added depth to the rally, enhancing its sustainability and appeal. This sector rotation and widening breadth are characteristic of more durable bull markets.


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Bottom Line:


Looking ahead, the current bullish momentum is expected to extend into August, followed by a potential consolidation phase—consistent with typical seasonal patterns observed in post-election years. This outlook reflects a favorable backdrop for risk assets as investors balance macroeconomic data, earnings strength, and monetary policy expectations. Our research shows there are two W.D. Gann pivot dates in the month of August. Premium members can see the dates in Discord. If you are a premium member and do not have access to Discord, please contact us.


Broad-Based Technical Strength Suggests Bullish Outlook For July With all five major U.S. equity indices currently registering weekly buy signals, the market setup remains structurally bullish. We anticipate any pullbacks to be shallow and met with swift dip-buying activity, reinforcing the prevailing uptrend. The breadth of participation is particularly notable—broad sector rotation and upside momentum are supporting the latest push to all-time highs for the S&P 500 (SPX) and Nasdaq-100 (QQQ), with both the Dow Jones Industrial Average (DJIA) and equal-weighted S&P 500 (RSP) positioned to potentially confirm new highs in the coming week. This type of broad-based expansion across market cap and sector exposures strengthens the bull case and suggests durable internal support for the rally. Sentiment is gradually shifting, with investors beginning to re-engage and increase risk exposure. While this uptick in optimism reflects growing confidence in the trend, current positioning and sentiment readings are not yet at levels typically associated with euphoria or overbought extremes. As such, we do not yet see the conditions necessary for a market top, but sentiment will remain a key variable to monitor in the sessions ahead.


The S&P 500 Equal Weight ETF (RSP) signaled a buy alert for the weekly chart on Thursday July 3, 2025 chart; now we have all five major indexes with confirmed buy signals on both a daily and weekly basis. Our next W.D. Gann Cycle Pivot Date will be released later this month. You can find out more in our premium Discord channel. On June 9, 2025, our proprietary algorithm has issued weekly buy signals across four of the five major U.S. equity benchmarks—the S&P 500 (SPY), Nasdaq-100 (QQQ), Russell 2000 (IWM), and Dow Jones Industrial Average (DIA). Tuesday, April 29, 2025, we have IWM & RSP ETFs; the two are the most important indexes to give buy signals. Now, we have all five major indexes with buy signals generated from our proprietary algorithm. Monday, April 28, 2025, we had a buy signal generated from our proprietary algorithm for the Dow Jones ETF DIA on the daily chart. The market structure continues to improve, breadth thrusts confirm internal strength, and technical conditions suggest that while short-term upside could be capped, the path of least resistance remains higher. April 25, 2025, Technical Outlook: SPY, QQQ, and DIA have daily buy signals. Sector ETFs (XLK, AIQ, SMH, XLY) have triggered buy signals. April 24, 2025, as do Bitcoin, and VIX has a daily sell signal (bullish for equities).



 
 

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