Wendy Kirkland’s Weekly Market Watch July 14, 2025

Market Watch July 14, 2025

Wendy Kirkland’s Weekly Market Watch July 14, 2025…Market Nears All-Time Highs, But Is a Pullback Ahead?

Wendy will addresses the key question on every trader’s mind: can the market sustain its position near all-time highs? While previous weeks have shown strength, today’s session is marked by volatility and uncertainty, with a clear divide between struggling sectors like Technology and stronger ones like Financials.
To get a clearer picture beyond the daily noise, Wendy dives into the longer-term charts to assess the market’s underlying health.

The Weekly Chart’s Warning Sign

Looking at the weekly chart of the Dow Jones, Wendy notes that after reaching an all-time high two weeks ago, the market has started to pull back. Based on historical price action, she suggests this could be the beginning of a multi-week pullback. This isn’t necessarily bearish in the long run; instead, it could be a healthy consolidation phase, allowing the market to build a stronger base before attempting another sustained move higher toward the end of the year.

The Critical Monthly Indicator: A Divergence in Momentum

The most compelling evidence for a potential pullback comes from the monthly chart and a key momentum indicator: the Percentage Price Oscillator (PPO).

Wendy points out a significant divergence: while market prices are at or near their all-time highs, the monthly PPO indicator is still in bearish territory. Despite trending up for the last six months, it has failed to make a bullish crossover. This suggests that the long-term momentum is weak and does not fully support the current high price levels. Wendy speculates that the market may need to drop further to create more “white space” on the indicator before a healthier, more sustainable rally can begin.

Key Takeaway: Trade with Caution

While a sudden surge is always possible, the combination of daily volatility and lagging long-term momentum suggests traders should be cautious. The evidence points to the possibility of a short-to-medium-term pullback before the market can establish a stronger foundation for a potential rally later in the year.

Wendy Kirkland’s Weekly Market Watch July 14, 2025