10/10 Cautiously Bullish. 300 Buying | 275 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bullish – Caution.
The market pulled back modestly from record highs with the S&P 500 and Nasdaq closing slightly lower, reflecting some profit-taking amid a lack of fresh catalysts. Defensive sectors, led by consumer staples, outperformed while materials, industrials, and energy lagged due to sector-specific headwinds including China’s export restrictions on rare earths and softer commodity prices. Volatility remained subdued with SPY and QQQ consolidating in narrow ranges and VXX showing stability, signaling cautious investor positioning ahead of upcoming earnings and economic data.
Consumer staples gained on strong earnings from Costco and PepsiCo, while industrials and materials faced pressure. Technology and AI-related names showed selective strength, with Nvidia and Oracle advancing on positive analyst revisions. The ongoing government shutdown continues to limit economic data flow, with no major reports expected tomorrow, keeping traders focused on earnings and sector rotation cues.
Key Takeaway:
Swing traders should focus on stocks showing late-day volume surges and close-near-highs for potential 1–3 day continuation plays, especially in biotech, AI, and hard assets. Be cautious with materials and industrial names facing macro headwinds and watch support levels closely given the bearish 50SMA breadth. Maintain tight stops and size positions carefully amid low volatility and mixed sector leadership.
Watchlist
Continuation: RGTI (S1: 46, S2: 45.5, S3: 44.5, R1: 47, R2: 48.5, R3: 50)
Anticipation: PLTR (S1: 185, S2: 183, S3: 182, R1: 188, R2: 190, R3: 193)