Charts for July 16, 2025

Charts of the day. (you can click the chart for larger image)

SPX:

* 279 stocks in bullish mode. Big downtick and dropping below the weekly bullish% (332). That's a bearish development. * BullsPower at 41, BearsPower at 12.5. Bulls keep the upper hand, but their lead shrinks. * Above both Watershed lines = bullish. The dW at 6150 is on watch for a possible test. * The number of pP signals falls back and is down more than 50% from the peak a few days ago. Consolidation or pullback is becoming the short term base scenario.

* ELC goes up, but is slowing. * THRUST going down. *  Thrust has not been below zero since the April lows. * The Repellor is at 6094. * BlueSnake is flattening out and quite likely to turn down.

* Rotator goes down. Both components are weakening. The red component may have marked a significant market top, as it often does * The Bands keep rising and trading remains in the upper band, but only by a few points. With this setup a 200 point pullback would be the ordinary.

* SwX stays yellow - neutral. The important point to watch here is whether it goes on to red or gets back to green. * MoM goes down. * The 6200 level (blue line) is support to watch. If it breaks then I expect to see a more severe downside reaction.

* Icebergs algo. * Gold on the mountain and lava disappeared several days ago, and now green mountain is falling below the healthy + 4 level. * How much downside that will trigger we don't know. And green mountain could rebound >4. But for the time being I would stay cautious and patient. This has been an awesome run since the April low.

* As special chart of the day I am choosing EURUSD. * Note how the recent occasions of gold on the mountain + lava all marked peaks and excellent chances to take profit. (keep that in mind with the previous Icebergs charts for SPX too). * Another important concept you can see in this chart is when higher highs (or lower lows) fail to touch the ceiling (or bottom) of the Envelope. (marked with orange circles here). That is common near important trend changes. * You can then wait for the Envelope to turn down (or up) to position for the newly emerging trend. * This is just another more visual way of trading. Our subscribers get daily Icebergs charts with Envelopes for over 1000 stocks and indexes. Give it a try.