8/22 Bearish. 250 Buying | 90 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Neutral.
The market continues its retreat amid hawkish Fed rhetoric and disappointing economic data, signaling stagflation risks with rising inflation pressures and weakening manufacturing sentiment. Consumer staples led sector declines after Walmart’s earnings miss, while energy and materials bucked the trend with modest gains supported by rising oil prices. Volatility remains subdued with SPY and QQQ consolidating near key support levels, but institutional volume spikes suggest cautious positioning ahead of Fed Chair Powell’s Jackson Hole speech tomorrow.
Key upcoming catalyst: Powell’s speech at Jackson Hole, expected to maintain a wait-and-see approach on rate cuts despite softening labor data and persistent inflation.
Key Takeaway:
Traders should remain cautious and favor defensive positioning given broad sector weakness and hawkish Fed signals. Focus on stocks with strong relative volume and clear support, particularly in resilient sectors like energy and materials. Avoid chasing breakouts in mega-caps or consumer staples until clearer directional momentum emerges post-Jackson Hole. Use tight stops below key support levels to manage risk amid ongoing volatility.
Watchlist
Continuation: MRSN (S1: 7.5, S2: 7.5, S3: 7.5, R1: 8, R2: 8.5, R3: 8.5)
Anticipation: CRM (S1: 244, S2: 245, S3: 246, R1: 248, R2: 250, R3: 252)