Weekly S&P500 ChartStorm - 8 June 2025

This week: technical check, 3rd year bulls, Mag 7 flows and earnings, Small Caps valuation and positioning, Europe vs US, big winners, market cap shifts...

Welcome to the latest Weekly S&P500 #ChartStorm!

Learnings and conclusions from this week’s charts:

• The S&P500 closed back above 6000 on Friday.

• Third years of bull markets (this year) can be messy.

• Small caps are unloved and undervalued.

• The cap-weighting of S&P500 (ex-100 largest) is near a record low.

• Some of the best stocks of history saw some of the biggest drawdowns.

Overall, the characteristically 2020’s era rapid collapse and recovery in stocks continues to run its course. Probably the key cautionary would be to remind folk that 3rd-year bulls have a habit of ranging and volatile behavior, but also that there are very interesting opportunities hiding in plain sight…

---

n.b. check out the new “Getting Started” section (how to make the most of your subscription to the Weekly ChartStorm) + Reviews & Testimonials page.

---

1. Technical Check:  Friday brought another milestone on the path to recovery, the S&P500 closed a hair above 6000 — that comes after breaking through multiple lines of resistance and back above its major moving averages. It has been a characteristically 2020’s era rapid decline + recovery.

Source:  MarketCharts.com

---

2. Curse of the 3rd Year Bull:  But with breadth topping out and still a couple of areas of overhead resistance and uncertainties in the background, it’s worth a reminder that the third year of cyclical bull markets tend to be messy. This time around has been no exception to that rule, and intriguingly it looks like a seasonal peak in that process is upon us. A good reminder to not throw caution (risk management) to the wind.