Wendy Kirkland’s Market Watch September 3, 2025

Wendy Kirkland’s Market Watch 
September 3, 2025

Join Option Trader Wendy Kirkland for an insightful session as she discusses her recent week in the market! 
This week, she’ll share her experiences in the stock market and her option strategies for the upcoming week.

A Volatile Start to the Week

In this week’s market watch, we’re seeing a mixed and volatile market. The major indices are showing indecision, with the Dow and Russell 2000 struggling, while the Nasdaq has seen some early strength. This back-and-forth action is largely driven by ongoing tariff discussions and other geopolitical events.

A look at the market map reveals a split personality: while big-name tech companies like Google and Apple are holding up, many smaller companies are in the red, reflecting the underlying uncertainty.

The Big Picture: A Bearish Divergence Emerges

To get a clearer view, we need to look at the bigger picture. On the weekly chart of the Dow Jones Industrial Average ($INDU), a classic warning sign has appeared: a bearish divergence.

• What this means: While the price of the Dow recently pushed to a new all-time high, the CCI (Commodity Channel Index), a key momentum indicator, failed to make a new high. Instead, it formed a lower peak.

This divergence between price and momentum is a significant technical signal. It suggests that the energy behind the recent rally is fading, which could lead to a substantial pullback or a period of consolidation.

The Monthly View Confirms Caution

The monthly chart adds another layer to this cautious outlook. Even after a six-month rally, the PPO (Percentage Price Oscillator) indicator remains in bearish territory. This indicates that, despite the new price highs, the long-term underlying trend has not yet confirmed a full return to bullish strength.

Key Takeaway for Traders

The market is at a critical point. While it’s hovering near all-time highs, the underlying technical indicators are flashing warning signs of weakening momentum. This is a time for caution. The appearance of a bearish divergence on the weekly chart suggests that the risk of a market pullback has increased significantly.