Market Commentary – July 7, 2025
The Bull is alive and charging ahead, with stocks closing out the holiday week at all-time highs!
We have been bullish while expecting a pullback – but the stock price momentum has been so strong that a correction has not materialized. In fact, the Cumulative Advance-Decline lines for both the NYSE and S&P 500 have hit record all-time highs, confirming the Bull is charging across the full breadth of the market. With overbought markets, a pullback can happen at any time. But this summer rally is alive and kicking. We expect a peak in August with a seasonal pullback in September/October, followed by a strong year-end rally. We have been looking for S&P 500 to hit 7200 next year. BUT NOW – we believe the S&P 500 can close the year at 7000, and hit 7200 within the first quarter of 2026. This rally is a healthy strong market, in our view.