BY MARK SEBASTIAN
July 8, 2025
Hey Traders,
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The S&P 500 had its first down day since July 1st and only the second dating back to June expiration.
I still like the market higher … but I think this breather was needed:
This run from April lows has been nothing but astounding, rivaling the rally from the Covid lows.
Pretty interesting stuff.
VIX did not really get much of a pop given we were coming off the long weekend.
The spread between futures and the cash market has normalized with most of the pressure coming in the futures.
Most of this points toward a breather, not a roll over – I like the market higher.
Of those markets I still like the RUT:
It still has a lot of ground to make up. If we get a little follow through from Monday’s selling, I would view it as a chance to go long IWM or TNA.
Reviewing Yesterday’s Trade
I have killed TNA and am long a super overnight into Friday. Yes, we started out soft on Monday, but I like things higher.
…Today’s Outlook
I think Tuesday might be slow. Look for a double down play.
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Your Only Option,
Mark Sebastian