In this weekend’s *Protect Your Portfolio*, Stephen Whiteside highlights a significant shift in market sentiment, sparked by a “disturbance in the force” on Friday. Multiple bearish reversal signals throughout the week, particularly Thursday and Friday, triggered new daily sell signals in key U.S. stocks. While the Magnificent Seven ETF, Apple, Amazon, and Alphabet moved to sell signals, Meta, Microsoft, and Nvidia remain on buy signals—for now. The TSX also rolled over, with several major Canadian banks, including TD and BNS, closing on sell signals. Despite the headlines blaming weak employment data, the decline began well before Friday’s economic release, pointing instead to Thursday’s disappointing earnings as the real catalyst.
Looking at broader market conditions, the VIX is rising—another bearish signal—while microcap stocks and the Russell 2000 underperformed significantly, reinforcing the “risk-off” narrative. Semiconductors and energy held up best, with Nvidia and Broadcom still on buy signals. On the weekly charts, key indices like the Dow, S\&P 500, and NASDAQ 100 show signs of topping, with bearish reversal weeks and early warning signals in play. While the long-term outlook remains cautiously bullish, investors are advised to reduce exposure and monitor key support levels closely in anticipation of further downside risk.
Stephen Whiteside
Sunday, August 3, 2025
