10/24 Cautiously Bullish. 370 Buying | 100 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Neutral. 20% Weekly is Neutral.
The market rebounded with tech and mega-caps leading gains, supported by strong semiconductor and industrial earnings, while small- and mid-caps outperformed on rotation out of defensives. Energy surged on crude oil strength amid new Russian sanctions. Defensive sectors lagged, and volatility remains subdued, pointing to cautious optimism.
Tech and semiconductors showed momentum with names like Lam Research and NVIDIA driving sector strength, while industrials and energy also posted solid gains. Consumer discretionary was mixed but held up despite Tesla’s earnings miss early in the day.
Tomorrow’s key catalyst is the delayed September Consumer Price Index report, which will be critical for rate cut expectations amid a recent data vacuum.
Key Takeaway:
Focus on swing entries in leading semiconductors and industrials that showed late-day accumulation and breakout patterns, such as TDG, NVMI, and STX. Use pullback entries near intraday support zones with tight stops below recent lows, given the neutral primary indicator and upcoming CPI data. Avoid defensive sectors and discretionary names showing weakness or no follow-through. Maintain a cautiously bullish stance, prioritizing momentum names with strong relative volume and clear support/resistance levels.
Watchlist
Continuation: TDG (S1: 1345, S2: 1340, S3: 1336.5, R1: 1351.5, R2: 1355, R3: 1360)
Anticipation: INTU (S1: 676.5, S2: 675.5, S3: 672.5, R1: 680, R2: 686.5, R3: 692)