9/5 Cautiously Bullish. 300 Buying | 240 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bullish – Caution.
The market extended gains with broad-based strength pushing the S&P 500 to a record close, supported by firming rate cut expectations amid mixed but generally positive economic data. Technology and consumer discretionary sectors led the advance, while utilities lagged slightly. Volatility remains subdued with VXX drifting lower, signaling reduced hedging demand.
Consumer discretionary surged 2.3%, led by Amazon’s strong +4.3% gain, while homebuilders and communication services also showed notable strength. Mega-cap growth continued to outperform modestly, and small- and mid-cap indices participated in the rally. Earnings from Ciena highlighted AI-driven demand in tech infrastructure, reinforcing momentum in the technology sector.
Attention turns to tomorrow’s August Nonfarm Payrolls and related employment data, which could influence Fed rate cut expectations and market direction.
Key Takeaway:
Swing traders should focus on technology and consumer discretionary stocks showing strong volume and momentum, while remaining cautious given lighter overall volume and mixed breadth. Use support levels near recent intraday lows for risk management, and watch for potential volatility spikes around tomorrow’s key employment data. Avoid overexposure to defensive sectors like utilities which underperformed.
Watchlist
Continuation: ASML (S1: 753, S2: 750, S3: 746, R1: 765, R2: 770, R3: 775)
Continuation: TSM (S1: 234, S2: 232, S3: 230, R1: 236, R2: 238, R3: 240)
Anticipation: GOOG (S1: 230, S2: 229.5, S3: 228.5, R1: 232.5, R2: 233, R3: 234.5)
Anticipation: MDB (S1: 318, S2: 316, S3: 315, R1: 322, R2: 324, R3: 326)