Last week was tough for stocks -- and we now enter the biggest weeks of the second-quarter earnings season, with plenty of major earnings report for the market to digest. On the economic front, it will be relatively quiet -- but we do get updates on GDP on Thursday and on PCE on Friday. The major indices have worked off extreme overbought conditions on the daily charts, and quickly. But the daily uptrends in the 14-day relative strength index and the daily moving-average convergence/divergence have been broken. In addition, weekly momentum is still elevated and we did see a bearish divergence at the weekly closing high on July 12 versus the closing high from late March. The S&P 500 broke its 21-day exponential for the first time since early April, but its uptrend off the lows since early May remains intact. The 21-day rate of change is close to going bearish, as is the daily vortex indicator. Minor trendline support next week is at 5,480, the rising 50-day is at 5,420 (extending into next week), and chart support lies between 5,225 and 5,310. These levels also are associated with 50% and 61.8% retracements of the rally since mid-April. The more worrisome condition exists with the high-beta indices like the Nasdaq 100 (QQQ). It has broken an uptrend off the lows since early May, the 21-day rate of change is in negative territory, there have been multiple days of distributive action, the 5/13 exponential crossover is bearish, and price is sitting on the prior low from June 24 near $474. In addition, the biggest QQQ issues either are close to breaking or have already broken below their 50-day averages. (Mark Arbeter, CMT)

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are DuPont de Nemours Inc (DD); GE Vernova Inc. (GEV); Palantir Technologies Inc (PLTR); Dicks Sporting Goods, Inc. (DKS) and the Focus List deletions are ASML Holding NV (ASML); Linde Plc. (LIN); Oshkosh Corp (OSK); TJX Companies, Inc. (TJX).

Linde plc is a leading global industrial gas and engineering services company formed from the October 2018 merger of Linde AG and Praxair Inc. The company has approximately 80,000 employees and serves customers in more than 100 countries.