2/6 Bearish. 150 Buying | 950 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bearish. 20% Weekly is Bearish – Extreme Caution.
The market remains under sustained selling pressure, with major indices closing lower and the S&P 500 slipping below its 50-day moving average, confirming bearish momentum. Volatility surged over 20%, reflecting heightened investor unease amid tech and consumer discretionary weakness. Defensive sectors like Consumer Staples and Utilities showed mild strength, while Materials and Financials lagged sharply.
Tech leadership is selective, favoring semiconductors and hardware over software/cloud, with notable late-session breakouts in cyclical industrials and semis. Risk-on proxies showed some strength but remain overshadowed by broad market weakness. Amazon’s earnings after the close and upcoming consumer sentiment data could further sway market direction.
Key Takeaway:
Swing traders should prioritize short setups or remain sidelined until clear support holds near key levels, especially as volatility remains elevated. Focus on high-conviction breakouts in select industrial and semiconductor names while avoiding software and consumer discretionary sectors showing late-day distribution. Use tight stops given the bearish backdrop and elevated VXX readings.
Watchlist
Continuation: MOD (S1: 205, S2: 204, S3: 202, R1: 207, R2: 210, R3: 211)
Anticipation: CHRW (S1: 196, S2: 195.5, S3: 195, R1: 198, R2: 199, R3: 200)