SP500 LDN TRADING UPDATE 25/6/25

WEEKLY & DAILY LEVELS

***QUOTING ES1! CASH US500 EQUIVALENT LEVELS SUBTRACT ~50 POINTS***

WEEKLY ACTION AREA & PRICE TARGET VIDEO - https://www.youtube.com/watch?v=JGai0yB4XYE&t=218s

WEEKLY BULL BEAR ZONE 6050/60

WEEKLY RANGE RES 6130 SUP 5900 (6180 50% WEEKLY RANGE EXTENSION)

DAILY BULL BEAR ZONE 6125/15

DAILY RANGE RES 6202 SUP 6084

2 SIGMA RES 6261 SUP 6025

GAP LEVELS 6077/6018/5843/5741/5710 

VIX BULL JULY CONTRACT BEAR ZONE 21.35 DAILY BULL BEAR ZONE 19.75

DAILY MARKET CONDITION - ONE TIME FRAMING UP  - 6109

One-Time Framing Up (OTFU): This represents a market trend where each successive bar forms a higher low, signaling a strong and consistent upward movement.

TRADES & TARGETS

SHORT ON TEST REJECT OF 6180 TARGET DAILY BULL BEAR ZONE

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

LONG ON TEST REJECT DAILY BULL BEAR ZONE TARGET DAILY RANGE RES

(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 UPDATE: NASDAQ HITS NEW ALL-TIME HIGH

FICC and Equities

24 June 2025 | 8:34 PM UTC

Market Performance:

- S&P 500: +1.11% closing at 6,092 with minimal MOC impact.

- NASDAQ 100 (NDX): +1.53% closing at 22,190 (new all-time high).

- Russell 2000 (R2K): +1.34% at 2,161.

- Dow Jones (DJIA): +1.19% at 43,089.

Trading Volume:

16.9 billion shares traded across U.S. equity exchanges, slightly above the YTD daily average of 16.7 billion.

Volatility & Key Indicators:

- VIX: -11.8% at 17.48.

- Crude Oil: +5.17% at $64.98.

- U.S. 10-Year Yield: -5 bps at 4.29%.

- Gold: -1.34% at $3,323.

- DXY (Dollar Index): -0.47% at 97.96.

- Bitcoin: -1.98% at $105,860.

Highlights:

The Nasdaq closed at a record high of 22,190, supported by optimism around the ceasefire and favorable seasonal trends heading into July 4th. The S&P 500 is eyeing its previous all-time high of 6,144 (set on February 19, 2025).

Notable price action included a strong performance by the Most Rolling Short (GSCBMSAL) basket, which gained +2.90% and has outperformed the S&P 500 by ~10% over the past month. Semiconductor stocks surged +4%, with broad-based gains of +2-4% across the group, likely driven by positive AI developments and improving macroeconomic conditions favoring "secular cyclicals."

Sector Insights:

- TMT Commentary (Callahan): The market remains challenging for alpha generation due to single-stock volatility and a squeezy/laggard tape. Some safe-haven names (e.g., EBAY, LYV, DUOL, Security Software) are showing signs of weakness, potentially being used as funding sources.

- Standouts: UBER +7%, benefiting from Tesla challenges, travel recovery, and the Waymo/Atlanta launch.

Key Events Tomorrow:

- Macro: New Home Sales, Powell’s testimony.

- Earnings: PAYX, MU.

- Conferences: AI-focused events (Cerebral Valley, VB Transform), HPE Discover, TSM China Symposium.

- Other: GS-hosted IBM event, NATO Summit, EQIX analyst day.

Market Activity:

- Floor activity was moderate, rated 5/10, finishing -75 bps vs. a 30-day average of -99 bps.

- Long-Only investors were net sellers (-$2 billion), primarily in tech, financials, and energy.

- Hedge Funds were net buyers (+$750 million), with broad-based demand across sectors.

Post-Bell Updates:

- FedEx (FDX): -5% after reporting Q4 EPS of $6.07 vs. $5.81 consensus. Fiscal Q1 guidance of $3.40-4.00 falls short of the $4.03 consensus. Capex guidance reduced to $4.5 billion vs. $5 billion consensus. Implied move ~7%, with earnings call at 5:30 PM. Full-year EPS guidance suggests $15-20, below the consensus of $19.51.

Derivatives Market:

Volatility dropped sharply as the VIX hit its lowest level since early June. Skew flattened on the market’s upward move. SPX flows were concentrated in short-dated upside buying.

Banks were in focus ahead of expected regulatory reform developments this week. KRE and XLF call volumes were ~3x their 20-day averages, as investors sought upside exposure.

The straddle for the rest of the week is priced at 0.98%.