EB Daily Market Report - Wednesday, July 23, 2025

Tom Bowley - July 23, 2025

Executive Summary

Futures were mostly higher overnight and our major indices gapped higher at the opening bell
After brief morning weakness, stocks have strengthened with the S&P 500 hitting a fresh all-time high
Health care (XLV, +1.78%) is showing strength for a 2nd consecutive session and industrials (XLI, +1.73%) are strong as well
Most sectors are higher, though we have seen a bit of weakness in utilities (XLU, -1.01%) and consumer staples (XLP, -0.18%)
Cryptocurrencies are down as profit taking kicks in; XRP ($XRPUSD, -8.64%) and Solana ($SOLUSD, -5.21%) are among the weakest
Commodities are mixed with gold ($GOLD, -1.13%) lower, while silver ($SILVER, +0.15%) and crude oil ($WTIC, +0.15%) both rise fractionally
Biotechnology ($DJUSBT, +2.92%) is showing considerable strength for a 2nd straight day, leaving that index at its highest level since its April low
Industrials are seeing across-the-board strength with delivery services ($DJUSAF, +2.55%) and aerospace ($DJUSAS, +2.50%) pacing the advance
Baker Hughes (BKR, +11.06%) has parlayed a very strong quarterly earnings report into a leadership role in the oil equipment & services ($DJUSOI, +5.26%) area
Alphabet (GOOGL, -0.48%) and Tesla (TSLA, +0.22%) are both set to report quarterly results after the closing bell today

Market Outlook

Setting new all-time highs is rarely a bad thing. In fact, one of the very few times I'd be concerned was if growth stocks were largely ignoring the advance and lagging badly. Well, the chart below summarizes most of our intermarket growth vs. value (or offensive vs. defensive) ratios and they look as though they fully support this latest secular bull market advance:

While several of these growth vs. value ratios are below their 52-week highs, there's absolutely no doubt that they've been trending higher along with the benchmark S&P 500 and that's what I'm primarily looking for.

Sectors/Industries

We've seen renewed strength in a few industries as a result of market rotation, and I wanted to point these out. I pointed out home construction ($DJUSHB) yesterday, but here are a couple others showing substantial improvement:

Media Agencies ($DJUSAV)

I still want to see the DJUSAV clear absolute price resistance near 540 and its key relative resistance level from mid-May, but there's no doubt this group has improved dramatically in July.

Furnishings ($DJUSFH)

That blue directional arrow highlights the big move that furnishings made to start July. This strength has never really let up and it's now broken out to a fresh 52-week high. This breakout tells me that we're likely to see the DJUSFH also break out on a relative basis. Currently, the group is testing a very key level of relative resistance.

ChartLists and Trading Strategies

It's no secret that I love strong stocks that pull back and test their rising 20-day EMAs. It's one of my favorite trading strategies. Today, I personally added a stock that's been strong, fell below its 20-day EMA intraday today, but has since rallied back to attempt to close above it. Here it is:

As long as gap support holds, I'm ok owning MGNI. I'm looking for a return to the recent price high at 25.

Upcoming Earnings

We have included Upcoming Earnings ChartLists on our website for each day throughout earnings season (likely through late August). Be sure to check out these ChartLists on our website.

Economic Reports

June existing home sales: 3,930,000 (actual) vs. 4,000,000 (estimate)

Happy trading!

Tom