Free Weekly Stock Market Commentary 8/1/2025

By Lawrence G. McMillan

The buildup of overbought conditions has manifested itself in new confirmed sell signals. However, the $SPX chart is still positive, and will remain so, certainly as long as it’s above 6150. A bullish case can theoretically be made for $SPX all the way down to 5920, but at this point, if it were to fall back below the February highs (6150), that would be psychologically damaging for it would mean that the whole breakout in June and July was a false one.