7/28 Cautiously Bullish. 200 Buying | 150 Selling.
% Stocks Over 50SMA is Bullish – Caution. Primary Indicator is Bullish. 20% Weekly is Bullish – Caution.
The market extended its record-setting streak with new intraday and closing highs for the S&P 500 and Nasdaq, supported by positive earnings and optimism around upcoming trade talks with China and a potential US-EU trade framework. Durable goods data showed mixed signals but did not derail the bullish momentum.
Consumer discretionary led gains (+0.8%), driven by Deckers Outdoor’s strong earnings and rally, while materials (+1.2%), industrials (+1.0%), financials (+0.7%), and health care (+0.5%) also advanced. Energy and communication services lagged. Volatility (VXX) remained subdued, reflecting steady risk appetite.
Key upcoming catalysts include Monday’s 2- and 5-year Treasury auctions and a busy earnings calendar featuring Bank of Hawaii, Enphase, and others. Traders should watch for potential volume surges around these events.
Key Takeaway:
Focus on swing entries in leading consumer discretionary names like DECK, which is showing strong momentum and international growth strength. Maintain stops below key support levels to manage risk amid cautious breadth. Watch for trade-related headlines early next week that could trigger sector rotation or volatility spikes. Avoid chasing overextended sectors like energy, which remain weak.
Watchlist
Continuation: SHOP (S1: 124, S2: 122.5, S3: 121, R1: 125.5, R2: 126, R3: 128)
Anticipation: META (S1: 713, S2: 715, S3: 718, R1: 720, R2: 725, R3: 730)