8/11 Cautiously Bullish. 325 Buying | 260 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Bullish – Caution. 20% Weekly is Bullish – Extreme Caution.
The market extended gains with Nasdaq hitting a record close and S&P 500 just shy of all-time highs, fueled by mega-cap tech strength and broad sector participation. Communication Services, Technology, Financials, and Health Care led with solid volume, while Real Estate and Utilities lagged. Volatility remains subdued as VXX trends lower, reflecting growing investor confidence.
Focus turns to the upcoming CPI report on Tuesday and key earnings next week, including major tech and industrial names, which could shift momentum.
Key Takeaway:
Swing traders should lean into selective long setups in strong sectors like Technology and Consumer Discretionary, watching for volume confirmation near support levels. Avoid chasing overextended small caps and remain cautious given the mixed signals from primary and 20% breadth indicators. Tight stops below key support levels are advised amid elevated caution ahead of inflation data.
Watchlist
Continuation: ASML (S1: 721, S2: 720, S3: 718.5, R1: 723.5, R2: 724, R3: 726)
Anticipation: HD (S1: 387, S2: 388, S3: 389, R1: 391, R2: 393, R3: 395)