8/18 Cautiously Bullish. 200 Buying | 180 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Bullish. 20% Weekly is Neutral.
The market closed mixed on record highs, with the DJIA and S&P 500 briefly reaching new intraday peaks but finishing modestly lower overall. Healthcare led gains, bolstered by a strong UnitedHealth rally after Berkshire Hathaway’s sizable share purchase, while tech and semiconductors faced selling pressure following disappointing guidance from Applied Materials. Inflation concerns and mixed import price data have tempered expectations for upcoming Fed rate cuts, keeping traders cautious.
Healthcare (+1.7%) and Communication Services (+0.8%) were the strongest sectors, while Technology (-0.8%) and Semiconductors (-2.2%) weighed on indices. Volatility remains contained with VXX steady near recent lows, reflecting subdued fear despite sector rotation. Small and mid caps underperformed modestly.
Ahead: Monday brings the NAHB Housing Market Index, a key gauge of housing sector health, which may influence cyclical sectors.
Key Takeaway:
Focus on healthcare and communication services for potential swing entries as leadership remains intact. Avoid heavy exposure to semiconductors and tech stocks showing weak guidance and volume selling. Watch for housing data Monday to gauge broader economic momentum. Manage risk tightly given mixed breadth and cautious sentiment.
Watchlist
Continuation: ASND (S1: 195, S2: 193, S3: 191, R1: 198, R2: 200, R3: 203)
Anticipation: AAPL (S1: 230, S2: 229.5, S3: 228, R1: 233, R2: 234, R3: 235.5)