9/26 Bearish. 170 Buying | 370 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bullish – Caution.
The market continues to retreat amid fading rate cut expectations and strong economic data, notably robust jobless claims and upward GDP revisions, which keep pressure on mega-caps and broader indices.
Energy stands out as the only sector with gains, led by refiners, while healthcare, consumer discretionary, and materials lag; semiconductors show late-session strength with volume expansion, signaling potential near-term leadership. Volatility (VXX) is mild, suggesting subdued fear despite selling pressure.
Tomorrow’s PCE Price Index release is a key catalyst; a firm inflation reading could further weigh on easing hopes.
Key Takeaway:
Traders should prioritize selective long entries in leading semiconductors (SOXL, TSM, ASML) and strong tech names (IBM, CIEN) on pullbacks or volume-backed breakouts, using tight stops near support zones. Avoid broad exposure to defensives and weak discretionary/media names showing distribution. Monitor PCE data for directional cues and adjust risk accordingly.
Watchlist
Continuation: SOXL (S1: 33.5, S2: 33.4, S3: 32.5, R1: 34.0, R2: 34.5, R3: 34.8)
Anticipation: AAPL (S1: 256.0, S2: 254.5, S3: 252.5, R1: 257.2, R2: 258.5, R3: 260.0)