ES Higher Despite Tariff News, Plus Charts on AAPL, GLW, LLY

Good Thursday Morning, MPTraders!  August 7, 2025-- Pre-Market Update: Where to begin this AM?  There is a lot going on, which has become the rule, rather than the exception, during the extremely activist Trump Administration...

-- POTUS announces 100% tariffs on semiconductor imports, except for those companies that "manufacture or commit to manufacturing in the U.S., such as AAPL...

-- Late yesterday, from the Oval Office, AAPL announced an additional $100 billion investment in the U.S. (totalling $600 billion) to build iPhones and Apple Watches on American soil... (see my char work on AAPL and GLW below)...

-- Last night at midnight, Reciprocal Tariffs took effect. Most countries will pay 10% to 15%, but others will pay more: Switzerland 39%, Loas 40%, Brazil 50%, India 50%, with China and Mexico still paused pending ongoing negotiations...

-- The Bank of England cut rates again (the fifth time during the current rate-cut cycle) to 4% from 4.25% from its peak at 5.25%, likely putting more pressure on Fed Chair Powell and reigniting the ire of President Trump...

-- Treasury Secretary Scott Bessent says President Trump will announce a new Fed Board member within days, with the interview process for the next Fed Chair already in progress...

-- Later today, POTUS is expected to sign an EO allowing private equity and crypto investments (alternative assets) in private 401k accounts...

-- LLY reports Earnings, the stock gets clocked based on a "miss" from its oral obesity drug (see my LLY chart work below)... 

As for ES this AM, who would have thought that the indices would be up 0.6% (40 points) after the President announced the imposition of reciprocal tariffs?  A big clue came late yesterday, when ES closed back above its 20 DMA and closed below it twice in the past 4 trading sessions, suggesting strongly that "this market just doesn't want to go down" more than the 3.5% from 7/31 to 8/01. 

My attached Hourly Chart shows that ES has recovered 75% of the 3.5% plunge from the ATH at 6468.50 on 7/31 to the 8/01 low at 6239.50. The strength has entered the final cluster of resistance from 6415 to 6450, which, if taken out, will point to upside continuation to new ATHs at 6500 next... 

Only a downside pivot reversal that presses beneath 6378 will trigger an initial reversal signal, but thereafter, ES will need to break below 6350 to confirm the end of a powerful, head-fake recovery rally ahead of another corrective downleg that projects to downside targets along my red dotted lines... Last is 6407.25 off of a pre-market high at 6426.75...

AAPL (see chart below)-- In reaction to its announcement of an additional $100 billion devoted to domestic manufacturing of iPhones and Apple Watches, AAPL spiked from around 203 to this AM's pre-market high at 221.00 so far. The ability of AAPL to hurdle and sustain above 221.00 also clears an 8-month resistance line that triggers a next-higher post-April rally target of 228-232. Bottom Line: As long as any forthcoming pullback from 221 is contained above 209, AAPL's pattern argues that the stock has unfinished business on the upside... Last is 218.96... (scroll down to GLW)...

GLW (Corning Inc) is the main beneficiary of the Apple announcement. The stock has popped 4.5% ahead of today's open. Bottom Line Technically:  As long as any forthcoming weakness is contained above 62.00 on the closing basis, GLW projects toward 74-77 before the post-April advance is exhausted... Last is 66.77... (Scroll down to LLY)...

LLY reported Earnings this AM, which disappointed The Street's 15% expectations of weight-loss associated with the oral, pill form treatment. LLY reported 12% weight-loss, which proceeded to trigger a plunge in the stock from yest's close at 746.37 to this AM's pre-market spike low of 637.00. 

After the CEO interview on CNBC massaged the near 15% plunge-- enabling the stock to recover to the 680-690 area-- what now for LLY technically? 

The serious technical damage inflicted and shown on both my attached 4-Hour and Daily charts indicates that unless LLY manages to climb and sustain above 730, my pattern work anticipates another loop down to revisit the 637-660 low-zone as part of a developing significant corrective bottoming process.

If 637 is violated, then my optimal target for the conclusion of the year-long correction is 590... Last is 691.15...

Next Up: DKNG... CELH... INTC... ASPN... BMNR...