8/29 Cautiously Bullish. 265 Buying | 125 Selling.
% Stocks Over 50SMA is Bullish – Caution. Primary Indicator is Bullish. 20% Weekly is Bullish.
The market extended gains with the S&P 500 hitting record highs amid strong mega-cap tech and solid Q2 GDP revision, despite mixed NVIDIA earnings.
Communication Services and Energy led sector gains, while defensive sectors like Utilities and Consumer Staples lagged; VXX showed mild volatility, indicating cautious investor sentiment.
Tomorrow’s focus is on the July PCE report, the Fed’s preferred inflation gauge, with a high probability of a 25-basis point rate cut at the September FOMC meeting.
Key Takeaway:
Swing traders should lean into the cautiously bullish environment by focusing on strong mega-cap tech and cyclical sectors like Energy and Consumer Discretionary. Watch for price action near key support levels and monitor volume for confirmation, especially around PCE data release. Avoid defensive sectors showing weakness and be prepared for potential volatility spikes in VXX.
Watchlist
Continuation: NVMI (S1: 275, S2: 274.5, S3: 272.5, R1: 278, R2: 279, R3: 281)
Anticipation: TSLA (S1: 345, S2: 342, S3: 338, R1: 347, R2: 349.5, R3: 354)