5/14 Bullish. 400 Buying | 200 Selling.
T2108 is Bullish. Primary Indicator is Bullish. 20% Weekly is Bullish – Extreme Caution.
Momentum remains strong as the S&P 500 erased its 2025 losses, led by mega caps and chipmakers, with Nvidia surging 5.6%. Despite UnitedHealth’s sharp drop on CEO turnover and suspended guidance, broad market participation in gains reflects sustained risk appetite.
Tech and Consumer Discretionary sectors show resilience, while defensive sectors lag amid increased volatility signaled by a rising VXX. Nasdaq outperformed with a 1.6% gain, suggesting leadership from growth stocks.
Ahead: Weekly MBA Mortgage Index and crude oil inventories Wednesday morning could influence market direction.
Key Takeaway:
Focus on tech and consumer discretionary names showing momentum, but maintain caution given extreme readings in the 20% weekly indicator and rising volatility. Use tight stops near support levels to manage risk, especially around key resistance points. Avoid defensive sectors unless confirmed by volume and price strength.
Watchlist
Continuation: HIMS (S1: 62, S2: 61.5, S3: 61, R1: 64, R2: 65, R3: 66)
Anticipation: ZM (S1: 150, S2: 145, S3: 140, R1: 160, R2: 165, R3: 170)
