Joel Elconin - Market Pullback, Tariff Tensions, and Defensive Rotation - A Technical Breakdown

In this KE Report Daily Editorial (August 1st), we’re joined by Joel Elconin, co-host of the PreMarket Prep show and founder of the Stock Trader Network, to unpack a tough end to the week for markets.

 

Markets sold off sharply on Friday, driven by a combination of renewed tariff worries and weak jobs data. Joel breaks down the technical damage, discusses the break of key support levels, and explores whether this is simply a short-term pullback or something more significant.

 

Key Discussion Highlights:

• Tariff deadline and soft jobs data spark a sharp risk-off move across equities.
  
• Tech leadership falters, with names like Apple breaking down below multi-week ranges.
  
• Joel highlights a shift in sentiment from a “Goldilocks market” to growing caution.
  
• VIX, bonds, and gold rise, while small caps underperform - signs of broad defensiveness.
  
• Rotation into value and dividend-paying stocks like utilities and healthcare names.
  
• Technical signs of complacency peaking in July, with low realized volatility and narrow breadth.
  
• What could come next: tariff negotiations, inflation data, and potential August seasonality pressure.
  
  

Joel also shares why investors should zoom out and maintain perspective after a strong run from April’s lows, rather than focusing solely on the recent pullback from all-time highs.

 

Click here to visit Joel’s PreMarket Prep website.

Click here to visit the Stock Trader Network.