8/1 Bearish. 200 Buying | 380 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bearish.
The market showed early strength from standout tech earnings (Meta, Microsoft) pushing intraday records, but broad selling pressure and chip sector weakness capped gains, leading to a volatile close. Defensive sectors like Utilities outperformed amid rising volatility (VXX +8.6%), signaling increased caution.
Tech momentum remains mixed as strong AI-driven beats contrast with semiconductor disappointments and tariff uncertainties. Consumer discretionary held up on Meta’s rally, while healthcare and materials lagged. Treasury yields were mostly steady, and economic data aligned with Fed’s watchful stance.
Key upcoming catalyst: Friday’s July U.S. jobs report and manufacturing data will be critical for near-term market direction amid overbought conditions.
Key Takeaway:
Traders should approach with caution given the bearish breadth and rising volatility despite pockets of tech strength. Focus on names with confirmed momentum and solid support levels, especially in tech and industrials showing volume-backed rallies. Avoid chasing extended chip stocks or weak healthcare names under regulatory pressure. Use tight stops and watch key support levels in major indices (SPY 631, QQQ 563) for signs of breakdown or rebound.
Watchlist
Continuation: NET (S1: 215.5, S2: 217, S3: 218.5, R1: 221.5, R2: 224, R3: 227)
Anticipation: AMD (S1: 174, S2: 176, S3: 177, R1: 179, R2: 181, R3: 183)