12/19 Neutral. 0 Buying | 0 Selling.
% Stocks Over 50SMA is Neutral. Primary Indicator is Neutral. 20% Weekly is Bearish.
Tech leadership returned as Micron’s blowout earnings and a cooler-than-expected November CPI report lifted the market; chipmakers and AI-related memory stocks led gains while energy lagged. Communication services, technology, and consumer discretionary sectors showed strength, supported by mega-cap names and strong volume late in the day. VXX rose slightly, signaling modestly increased volatility amid cautious sentiment.
The market remains in a choppy, range-bound mode despite technical victories like the S&P 500 reclaiming its 50-day moving average; watch for continuation in insurance and select momentum names, while metals/miners and consumer discretionary retail show late weakness.
Fed rate cut expectations remain priced in, with December’s CPI disinflation reinforcing a dovish bias. No major economic data or earnings are expected on Friday, so focus will remain on sector rotation and short-term momentum setups.
Key Takeaway:
Swing traders should prioritize names with confirmed late-day volume and momentum, especially in insurance (KNSL, TRV) and special-situations (BMNZ, CONI) while avoiding fading metals/miners and weak retail. Use pullback entries near support zones and confirm breakouts with volume to reduce risk. Expect modest volatility; keep stops tight on smaller caps and be patient for follow-through in tech and AI-related memory plays.
Watchlist
Continuation: KNSL (S1: 391.5, S2: 393, S3: 394.5, R1: 397, R2: 398, R3: 400)
Anticipation: MAR (S1: 306.5, S2: 306.5, S3: 306, R1: 308.5, R2: 309.5, R3: 311)