Beginning of the End"? Strategist Warns the Stock Market Rally May Be Nearing a Tipping Point

The U.S. stock market continues its impressive rally, with the S&P 500 index climbing to historic highs near the 6,300 level. However, Gareth Soloway, Chief Market Strategist at Verified Investing, believes this rally could be the calm before the storm. In a July 15 interview with David Lin, Soloway pointed to several technical signals suggesting a potential trend reversal. According to him, the market is no longer reacting strongly to positive news—often a warning sign.

🔍 Critical Level Emerging on the S&P 500 Chart Soloway identified a key upward trendline starting from the April 7 low, when the index had dropped nearly 20% amid trade war fears. This line now acts as the foundation of the current uptrend. Although stocks initially bounced back after April, the recent momentum is fading—even in the face of strong catalysts. One example: Nvidia received approval to sell its AI chips to China. While Nvidia's stock jumped 5% on the news, the broader S&P 500 index failed to follow through, ending the July 15 session slightly in the red.

⚠️ Market Weakness Despite Good News “We’re starting to see good news fail to push the market higher. That’s a classic sign the bull run is losing strength,” said Soloway. According to him, this could be the first step toward the end of the rally—both technically and fundamentally. While the S&P 500 sits around 6,263 points (up 0.3%), Soloway warns that a close below 6,265 could trigger algorithmic selling and institutional pullbacks, increasing pressure on retail investors and potentially signaling the end of the current uptrend.

🧭 What’s Next for Wall Street? While many investors still hope for continued growth, sentiment on Wall Street is becoming more cautious. Recession fears have eased in recent weeks, and the U.S. is actively pursuing new trade agreements. Yet uncertainty lingers—especially with retaliatory tariffs set to take effect on August 1. Soloway emphasizes that investors should closely watch the 6,265 level. A confirmed break below it could start a broader correction and possibly mark the beginning of a new phase—one where optimism gives way to caution.

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