Daily Morning Brief; July 20, 2026
Market Overview
The SPY reclaimed the 21 EMA today after that ugly drop on the 17th that dumped it below both the 8 and the 21. This is the first close back above the 21, so the stack is barely holding with the 8 EMA sitting just above at 748.46. We want to see a second and third close up here to confirm the shakeout is over and not a dead cat bounce. The 50 day at 743.53 held up as support through the dip, which is a good sign, and the VIX at 17.6 is calm enough. Watch how we finish the week, one clean close does not make a trend but it flips the near-term picture back to constructive.
Financials are carrying the flow today with call buying stacked across JPM, SCHW, and V, all of them in tight uptrends. Add in a big AAPL put sale and a longer dated GILD call and the tape leans bullish across sectors.
