SP500 LDN TRADING UPDATE 16/7/25

WEEKLY & DAILY LEVELS

***QUOTING ES1! CASH US500 EQUIVALENT LEVELS SUBTRACT ~35 POINTS***

WEEKLY BULL BEAR ZONE 6220/30

WEEKLY RANGE RES 6384 SUP 6204

DAILY BULL BEAR ZONE 6280/90

DAILY RANGE RES 6332 SUP 6215

2 SIGMA RES 6391 SUP 6157

GAP LEVELS 6147/6077/6018/5843/5741/5710 

VIX BULL JULY CONTRACT BEAR ZONE 21.35 DAILY BULL BEAR ZONE 17.75

DAILY MARKET CONDITION - BALANCE  - 6341/6246

Balance: This refers to a market condition where prices move within a defined range, reflecting uncertainty as participants await further market-generated information. Our approach to balance includes favoring fade trades at the range extremes (highs/lows) while preparing for potential breakout scenarios if the balance shifts.

TRADES & TARGETS

SHORT ON TEST/REJECT DAILY BULL BEAR ZONE TARGET DAILY RANGE SUP

LONG ON ACCEPTANCE ABOVE DAILY BULL BEAR ZONE TARGET DAILY RANGE RES

LONG ON TEST/REJECT WEEKLY BULL BEAR ZONE TARGET DAILY BULL BEAR ZONE

(I FADE TESTS OF 2 SIGMA LEVELS ESPECIALLY INTO THE FINAL HOUR OF THE NY CASH SESSION AS 90% OF THE TIME WHEN TESTED THE MARKET WILL CLOSE AT OR BELOW THESE LEVELS)

GOLDMAN SACHS TRADING DESK VIEWS

U.S. EQUITIES OVERVIEW: POOR BREADTH

Date: 15 July 2025 |

Key Indices:

- S&P: -40bps, closing at 6,243 with MOC $840m to BUY

- NDX: +13bps at 22,884

- R2K: -202bps at 2,217

- Dow: +98bps at 44,023

Market Stats:

- Total volume: 16.8b shares traded across U.S. equity exchanges, aligning with YTD daily average of 16.8b shares.

- VIX: +110bps at 17.39

- Crude: -45bps at $66.68

- US 10YR yield: +5bps at 4.48%

- Gold: -66bps at $3,336

- DXY: +55bps at 98.62

- Bitcoin: -323bps at $116,381

Market Dynamics:

Equities displayed weak breadth, driven by:

1. NVDA surging +4% after securing approval from Trump to sell its H20 AI chip in China.

2. Benign CPI data but slightly firmer implications for PCE, with yields breaking out (30Y >5%) and small caps declining (-2%). PCE forecast for June adjusted to 0.29% vs. 0.25% prior.

3. Mixed Financials earnings: beats (C) and misses (WFC, STT, BLK), with misses punished heavily.

Sector Highlights:

- Crypto-sensitive stocks (HOOD, CRCL, COIN) dropped after House Republicans failed to progress procedural motions for crypto bills and defense spending legislation.

- Healthcare traded weakly without clear drivers. Notable moves:

- GILD: -3% ahead of MRK HIV event Thursday.

- Tools: Aglient fell -6% on surprise CFO departure.

- UNH: -3% after negative press from Bloomberg regarding asset sales.

Trading Floor Activity:

- Activity levels rated 5/10.

- Floor finished flat vs. 30-day avg of +30bps.

- LOs: Slight net sellers, with supply in discretionary and macro products offset by demand in financials and tech.

- HFs: Small net buyers, driven by demand in staples and tech.

TMT EPS SETUP FOR NEXT WEEK:

Subsector Sentiment:

- Semis: Most crowded group in TMT.

- Telco/Media: Increase in idiosyncratic longs.

- Software: Sentiment downbeat with exceptions.

- IT Services/Agencies: Maximum negative sentiment.

Super Cap Sentiment (10=max long, 1=max short):

- NVDA: 10 – universally loved.

- MSFT: 9 – core long for most portfolios.

- META: 8.5 – well-held but caution increasing.

- AVGO: 8 – below NVDA but still favored.

- AMZN: 8 – well-held but debated (tariffs/2H AWS growth).

- GOOGL: 6.5 – out-of-favor with MFs and HFs.

- AAPL: 4 – largely negative sentiment.

GS PRIME L/S RATIO CHARTS:

- Semis: At multi-year highs.

- Software: At multi-year lows.

- Internet: High absolute L/S ratio but middle of range.

Notable: NVDA's market cap now approaches 90% of the entire SX5E (4.1tr vs. 4.8tr).