12/5 Bullish. 500 Buying | 100 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Bullish. 20% Weekly is Bullish – Caution.
The market drifted sideways with tight breadth as investors await Friday’s PCE report, maintaining a cautious bullish tone ahead of expected Fed rate cut signals.
Tech and consumer discretionary sectors showed pockets of strength, led by Meta’s AI pivot and strong retail names, while semiconductors and healthcare lagged; VXX volatility remained subdued supporting risk appetite.
Friday’s key catalyst is the September PCE Price Index release, which may influence early 2026 Fed policy expectations despite rate cut pricing largely baked in.
Key Takeaway:
Swing traders should focus on selective continuation setups in resilient sectors like industrials and consumer discretionary, while avoiding semiconductors until they reclaim intraday VWAP resistance. Use tight stops given mixed sector breadth and watch for PCE-driven volatility spikes. Favor entries near support on leaders showing volume-backed breakouts and scale out into resistance zones.
Watchlist
Continuation: FIX (S1: 998, S2: 994.5, S3: 991, R1: 1006.5, R2: 1015, R3: 1025)
Anticipation: BA (S1: 200, S2: 199.5, S3: 198.5, R1: 202.5, R2: 204, R3: 205.5)