Posts

S&P 500 Nears Key 50-Day Moving Average After Global Selloff

/in , /by

Tom Essaye of Sevens Report flags 6,665 as the next critical support level.

As the stock market wobbles, this is the key level to watch for the S&P 500

U.S. stocks remained under pressure in premarket trading Friday as global markets sold off across Europe and Asia. With investors questioning how much further the market could fall, Sevens Report Research founder Tom Essaye pointed to the S&P 500’s 50-day moving average — currently at 6,665.75 — as the next key level to watch.

The index closed at 6,720.32 on Thursday, according to FactSet data. Notably, the S&P 500 hasn’t closed below its 50-day moving average in 132 trading sessions — the longest such streak since February 2007, Dow Jones Market Data reported.

Also, click here to view the full article published in MarketWatch on November 7th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

S&P 500 Nears Key Technical Level as AI Doubts Pressure Stocks

/in , /by

Sevens Report’s Tyler Richey says a drop below 6,665 could mark “technical cracks” as AI optimism fades.

Stocks Face ‘Critical Tipping Point’ as Key Thresholds Tested

Doubts about whether billions poured into artificial intelligence will deliver returns — coupled with high stock valuations — sent the S&P 500 Index down to 6,720.32 on Thursday, its lowest level in two weeks. The 50-day moving average at 6,665 is emerging as a crucial support zone, according to Tyler Richey, technical analyst and editor of the Sevens Report. A break below that level could signal “technical cracks,” while a rebound above the 21-day moving average of 6,748.10 would likely restore risk-on momentum, Richey noted.

With government data stalled amid the shutdown and earnings season winding down, traders are leaning more heavily on chart patterns for clues. The S&P 500 has now logged three declines of at least 0.99% in the past six sessions and is down 2.5% from its last record as the Cboe Volatility Index climbs toward 20.

Also, click here to view the full Bloomberg article featured on Yahoo Finance published on Novemer 7th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Tom Essaye Interviewed: Stock Market Is Making the Economy Look Better Than It Is

/in , /by

Essaye warns that market resilience masks underlying economic softness heading into 2026.

The stock market is making the economy ‘look better’ than it is

Sevens Report Research founder, Tom Essaye, joins Opening Bid host Brian Sozzi to discuss the resilience of the stock market and what to keep an eye on heading into 2026.

Also, click here to view the full interview on Yahoo Finance published on November 4th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

AI Stocks Face Caution as Broader Market Slips, Says Essaye

/in , /by

Tom Essaye notes recent weakness outside AI but calls the selling “knee-jerk,” not the start of a larger downturn.

Review & Preview: Tech Check

“Essentially the rest of the stock market has been going down for over a week now and the only thing that’s been holding the S&P 500 up are the AI names,” Sevens Report Research’s Tom Essaye told me. “And now we have a very direct series of headlines of caution…on the increases in the AI-related stock prices.”

Still, this might simply be “knee-jerk selling,” according to Essaye.

“I don’t think that this is the start of something much bigger,” Essaye says. “The market seems absolutely fine, still embracing a lot of these AI-related headlines, but I do think that we’re going to get these temporary moments of caution because the whole debate ‘Is AI a bubble or not?’ it’s still incredibly unsettled.”

Also, click here to view the full article published in Barron’s on November 4th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Tom Essaye warns that most S&P 500 stocks are lagging as the index hits new highs.

/in , /by

S&P 500’s Gains Look Deceptive Despite 16% Yearly Rally

SPX: Two Concerning Trends to Watch as Stocks Hit New Highs

The S&P 500 slipped 0.9% last Thursday, a modest pullback given its 16.2% year-to-date gain. But according to Tom Essaye, president of Sevens Report Research, that strength is “more than a little bit deceiving.”

Of the 503 companies in the index, only 144 — or 28.6% — are outperforming, while 227 are down for the year. Essaye noted that this imbalance raises questions about how sustainable the rally really is.

He also highlighted that the NYSE Advance-Decline Line fell to a 12-week low last week, even as the S&P 500 posted 14 record closes since September — a signal that far fewer stocks are moving higher during the rally.

Essaye concluded that while concentrated leadership is normal during long market advances, current extremes suggest risks are building beneath the surface.

Also, click here to view the full article on Moneyshow.com published on November 3rd, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Sevens Report Warns of Rising Risks as S&P 500 Breadth Weakens

/in , /by

Tom Essaye cautions that half of S&P 500 stocks are down YTD despite record-level index.

Why risks of a stock-market drop are rising amid extreme concentration in the S&P 500, Sevens Report warns

Nearly half of S&P 500 stocks are posting year-to-date losses even as the index trades near record highs, according to Sevens Report Research. Founder Tom Essaye warned this divergence signals growing market fragility. “That is not so healthy,” he said, noting the risk of another sharp “air pocket” drop or a broader April-style pullback is rising daily. The top 10 S&P 500 companies now make up 40.5% of the index—surpassing the concentration seen during the 2000 tech bubble. Essaye also flagged weakening market breadth, with the NYSE Advance-Decline Line hitting a 12-week low and only 53% of S&P 500 stocks trading above their 200-day moving averages, the lowest since June.

Also, click here to view the full article published in MarketWatch on October 31st, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

The Latest on AI Bubble Discussions

/in , /by

What’s in Today’s Report:

  • The Latest on AI Bubble Discussions

Futures are little changed following a generally quiet night of news as there was no progress on resolving the shutdown and as investor attention turns to earnings.

Economically, the only notable report was German exports which declined modestly (down –3.9%).

Today there are no notable economic reports but there are several Fed speakers including, most importantly, Powell (8:30 a.m. ET).  Other Fed speakers today include Bowman (8:35 a.m. & 3:45 p.m. ET), Barr (12:45 p.m. ET), Daly (6:40 p.m. ET).  The key for markets here is clear:  If Powell (and others) reiterate their concern about the labor market and hint at more rate cuts, that should help support stocks amidst this absence of economic data.

Earnings season also kicks off this week, although next week is when results begin in earnest.  Some reports to watch today include: DAL ($1.52), PEP ($2.27), HELE ($0.34), LEVI ($0.31).

October MMT Chart and a Caution Signal From the VIX

/in , /by

What’s in Today’s Report:

  • October MMT Levels – S&P 500 Chart
  • Technical Observation: VIX vs. SPX Caution Signal

Futures turned higher with Treasuries overnight after the Bank of New Zealand cut policy rates by -50 bp to 2.50% vs. (E) -25 bp, a dovish surprise aimed at spurring growth.

Economically, Taiwan’s CPI remained low at 1.25% y/y while German Industrial Production plunged -4.3% vs. (E) -1.0% but the downbeat data is bolstering dovish central bank policy bets and buoying both bond and equity markets this morning.

Looking ahead to today’s session, the void of government economic data continues and there are no notable private sector releases today which will leave markets continuing to focus on Treasury auctions and Fed speak.

Regarding the first of those two topics, the Treasury will hold a 4-Month Bill auction at 11:30 a.m. ET and a (more important) 10-Yr Note auction at 1:00 p.m. ET.

Regarding the second topic, the Fed’s Musalem (9:20 a.m. ET), Barr (9:30 a.m. & 5:45 p.m. ET), Kashkari (3:15 p.m. & 4:30 p.m. ET), and Goolsbee (7:15 p.m. ET) are all scheduled to speak today.

And finally, the September FOMC meeting minutes will be released at 2:00 p.m. ET, and any evidence that pushes back on the thesis that the Fed will cut two more times in 2025 could send the dollar and yields (potentially sharply) higher and weigh meaningfully on equities.

 

It’s Not Too Late to Send Clients a Quarterly Letter!

Our Q3 ’25 Quarterly Letter was delivered to subscribers last week, complete with compliance backup and citations.

We continue to get feedback about how it is saving advisors time and helping them communicate with their clients in this volatile environment!

You can view our Q2 ’25 Quarterly Letter here. To learn more about the product (including price), please click this link.

If you’re interested in subscribing, please email info@sevensreport.com.

Tom Essaye: AI Stocks Create Major Risk for S&P 500

/in , /by

Valuation gap suggests index could fall 20% to align with the market

S&P 500 Heavily Reliant on AI Stocks

The S&P 500’s heavy reliance on AI-linked mega-cap tech stocks is creating a significant risk for investors, said Tom Essaye, founder of Sevens Report Research and former Merrill Lynch trader.

Essaye pointed to a valuation gap of nearly five full points between the SPDR S&P 500 ETF Trust (SPY) and the Invesco S&P 500 Equal Weight ETF (RSP). To trade in line with the equal-weight index, the S&P 500 would need to decline by almost 1,500 points, he noted.

The disparity is being driven by the “magnificent seven” and AI-related names. Essaye warned that if enthusiasm for AI weakens—whether from reduced capex or slower adoption—the S&P 500 could drop more than 20% before valuations align.

He stressed that he is not predicting such a downturn but said the correlation between AI sentiment and the S&P 500 is “too strong to ignore.”

Also, click here to view the full article on finnewsnetwork.com.au published on September 25th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Jobs Day

/in , /by

What’s in Today’s Report:

  • Abbreviated Jobs Report Preview

Futures are modestly higher ahead of the jobs report and following solid tech earnings overnight.

Semiconductor company Broadcom (AVGO) beat estimates and offered bullish guidance and the stock is up 9% pre-market and that’s helping to lift futures.

Economically, German Manufacturers’ Orders missed estimates, felling –2.9% vs. (E) 0.5%.

Focus today will be on the jobs report and expectations are as follows:  E: 77K Job-Adds, 4.3% Unemployment Rate, 3.8% Wage Growth.  Any job adds number in the mid to low 100k range would be ideal for stocks as it would keep rate cut expectations high but also signal a stable labor market.  Conversely, if job adds drop close to zero (or even go negative even with revisions) it’ll increase concerns the labor market is cooling, boost slowdown fears and likely hit stocks.