SP500 LDN TRADING UPDATE 14/8/25


WEEKLY & DAILY LEVELS


***QUOTING ES1! CASH US500 EQUIVALENT LEVELS SUBTRACT ~25 POINTS***

WEEKLY BULL BEAR ZONE 6350/60

WEEKLY RANGE RES 6504 SUP 6324

DAILY BULL BEAR ZONE 6440/50

DAILY RANGE RES 6542 SUP 6425

2 SIGMA RES 6600 SUP 6368

GAP LEVELS 6367/6264/6147/6077/6018/5843/5741/5710 

VIX DAILY BULL BEAR ZONE 17

DAILY MARKET CONDITION - ONE TIME FRAMING UP 6466

One-Time Framing Up (OTFU): This represents a market trend where each successive bar forms a higher low, signaling a strong and consistent upward movement.

TRADES & TARGETS

LONG ON TEST/REJECT DAILY BULL BEAR ZONE TARGET DAILY RANGE RES

SHORT ON TEST/REJECT DAILY RANGE RES TARGET DAILY BULL BEAR ZONE

(I FADE TESTS OF 2 SIGMA LEVELS ESPECIALLY INTO THE FINAL HOUR OF THE NY CASH SESSION AS 90% OF THE TIME WHEN TESTED THE MARKET WILL CLOSE AT OR BELOW THESE LEVELS)

GOLDMAN SACHS TRADING DESK VIEWS

.U.S. EQUITIES UPDATE: NEW ATHs ON CPI  

FICC and Equities | 12 August 2025 |

Market Performance:  

- S&P 500: +113 bps, closed at 6,445 with $3.7 billion MOC to sell.  

- NASDAQ 100 (NDX): +133 bps, closed at 23,839.  

- Russell 2000 (R2K): +304 bps, closed at 2,292.  

- Dow Jones: +110 bps, closed at 44,458.  

Volume and Volatility:  

- Total trading volume: 16.5 billion shares across U.S. equity exchanges (vs. YTD daily average of 16.9 billion).  

- VIX: -935 bps, closed at 14.73.  

Commodities and Fixed Income:  

- Crude Oil: -130 bps, closed at $63.13.  

- U.S. 10-Year Treasury Yield: Unchanged at 4.28%.  

- Gold: -15 bps, closed at $3,399.  

- DXY (Dollar Index): +46 bps, closed at 98.06.  

- Bitcoin: +97 bps, closed at $120,023.  

Key Highlights:  

- New All-Time Highs: S&P 500 (6,445) and NASDAQ 100 (23,839), driven by pro-growth and cyclical sectors following a benign CPI report.  

- CPI Data: Core inflation came in at 32 bps, with core goods showing muted growth (+0.21% m/m). This reduces concerns about a potential hot CPI print after the post-NFP rally. Core PCE is estimated to have risen 0.26% in July (+2.88% YoY).  

Market Sentiment:  

- Cyclicals outperformed defensives, marking their best day in three months.  

- Debate continues between "catch-down" in AI/Mag 7 leadership and "catch-up" in broader market sectors.  

Sector Highlights:  

- Semiconductors: NVDA had its largest day of underperformance (vs. Semis/SOX) since mid-April, up only 30 bps.  

- Airlines: Strong gains (7-10%) driven by soft landing narrative and headlines about Spirit Airlines’ financial struggles, benefiting UAL and DAL.  

Trading Activity:  

- Overall activity levels rated 4/10.  

- Floor finished +311 bps to buy (vs. 30-day avg of +70 bps).  

- Client activity muted:  

  - Long-Only funds (LOs): Net buyers (+$1 billion), broad demand across most sectors except discretionary.  

  - Hedge Funds (HFs): Small net sellers, driven by supply in tech and healthcare vs. demand in financials.  

Post-Bell Developments:  

- CAVA stock dropped -21% after-hours, continuing restaurant sector disappointments (excluding McDonald's). Summer conference comments hinted at macro challenges, but results were worse than expected.  

Derivatives Market:  

- Volatility declined after CPI aligned with expectations. Skew flattened as fear subsided.  

- Anticipated continued decline in volatility, with daily straddles resetting to YTD lows.  

- Key flows included rolling/unwinding in SPX and IWM, with notable activity in airline derivatives (AAL traded 250k calls vs. 20-day avg of 85k).  

- Weekly straddle priced at 0.77%, factoring in upcoming retail sales and PPI data.