9/12 Cautiously Bullish. 570 Buying | 90 Selling.
% Stocks Over 50SMA is Bullish – Caution. Primary Indicator is Bullish. 20% Weekly is Bullish.
Stocks rallied to record highs on rising rate cut optimism despite mixed inflation and labor data, fueling broad-based gains led by cyclical sectors.
Materials (+2.1%), Health Care (+1.7%), Consumer Discretionary (+1.7%), Financials (+1.7%), and Real Estate (+1.6%) outperformed, while Energy remained flat amid lower crude prices. Volatility (VXX) stayed subdued, supporting steady market conditions.
Senate vote on Fed Governor nomination and FOMC rate cut expectations remain key catalysts next week.
Key Takeaway:
Focus on sectors showing strong momentum and volume such as materials, health care, and consumer discretionary. Watch for continuation setups in leading tech and consumer names like TSLA and CRWD, entering near support with tight stops. Avoid chasing extended moves in energy and defensives. Confirm breakouts with relative volume to capitalize on the bullish but cautious environment.
Watchlist
Continuation: TSLA (S1: 368, S2: 366, S3: 365, R1: 372, R2: 375, R3: 377)
Anticipation: ADBE (S1: 350, S2: 349, S3: 346.5, R1: 353, R2: 355, R3: 357)