9/19 Cautiously Bullish. 580 Buying | 120 Selling.
% Stocks Over 50SMA is Bullish – Caution. Primary Indicator is Bullish. 20% Weekly is Neutral.
The market extended gains following the recent FOMC meeting, with major indices hitting record highs amid strong tech leadership and optimism for further Fed rate cuts in October and December. The Russell 2000 and Mid Cap 400 also posted notable advances, signaling broad market participation.
Technology and industrial sectors led the rally, with the PHLX Semiconductor Index up 3.6% and tech (+1.3%) outperforming. Consumer staples and discretionary lagged slightly, reflecting selective sector rotation. VXX remains subdued, indicating low volatility despite the cautious optimism.
No major economic data is scheduled for Friday, allowing traders to digest this week’s Fed-driven moves and earnings reports from Darden and FactSet.
Key Takeaway:
Focus on tech and industrial sectors which show strong momentum and volume support, especially mega-cap names like NVDA and INTC amid their strategic partnership. Maintain tight stops below key support levels given the cautious tone and watch for potential profit-taking in defensive sectors. Avoid chasing lagging consumer staples and discretionary stocks until clearer direction emerges.
Watchlist
Continuation: ASML (S1: 924, S2: 926, S3: 929, R1: 930, R2: 933, R3: 937)
Anticipation: GOOG (S1: 251, S2: 249, S3: 248, R1: 253, R2: 254, R3: 256)