8/4 Bearish. 170 Buying | 625 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bearish.
The market closed the week lower amid tariff hikes, disappointing payroll data, and soft manufacturing reports, fueling concerns over economic growth and earnings potential. Defensive sectors like healthcare and staples showed modest gains as volatility (VIX) spiked 23%, while growth-heavy sectors and mega-cap tech stocks sold off sharply. Futures point to cautious sentiment ahead with a high probability of Fed rate cuts in September.
Energy stocks displayed resilience with steady price and volume gains, while technology and consumer discretionary sectors faced notable weakness. Volatility remains elevated, reflecting investor uncertainty.
Upcoming catalysts include Monday’s Factory Orders report and a heavy slate of earnings early next week, which could influence market direction.
Key Takeaway:
Traders should remain cautious amid bearish breadth and elevated volatility, focusing on defensive sectors and high-conviction setups in energy and utilities. Watch for potential breakouts in stocks showing strong volume support but avoid chasing weak mega-cap tech names until clearer momentum emerges. Position sizing and stops are critical given the risk environment.
Watchlist
Continuation: NVTS (S1: 7.5, S2: 7.5, S3: 7.5, R1: 8, R2: 8, R3: 8.5)
Continuation: APPF (S1: 311.5, S2: 313, S3: 314.5, R1: 318, R2: 319, R3: 320.5)
Anticipation: MSCI (S1: 550, S2: 545, S3: 540, R1: 560, R2: 565, R3: 570)
Anticipation: CDNS (S1: 353, S2: 350, S3: 348, R1: 358, R2: 360, R3: 365)