8/25 Cautiously Bullish. 1500 Buying | 75 Selling.
% Stocks Over 50SMA is Bullish – Caution. Primary Indicator is Bullish. 20% Weekly is Neutral.
The market rallied strongly on Fed Chair Powell’s Jackson Hole speech, lifting major indices and boosting rate cut expectations for September, despite some lingering inflation concerns.
Small caps and homebuilders led gains, while tech showed resilience but remains shy of all-time highs; volatility eased as the VXX declined. Energy, communication services, materials, and financials were among the best-performing sectors; consumer staples lagged modestly.
Monday brings July New Home Sales data and early earnings from NSSC and PDD, which may set initial tone for the week.
Key Takeaway:
Traders should capitalize on the broad risk-on sentiment by focusing on small- and mid-cap names with strong volume support. Watch key support levels for pullbacks, especially in tech and discretionary sectors, but remain cautious given mixed signals from inflation and Fed hawkishness. Use stops below recent support to manage risk amid potential volatility shifts.
Watchlist
Continuation: AMD (S1: 167, S2: 167, S3: 167, R1: 168.5, R2: 169, R3: 170.5)
Anticipation: NOW (S1: 885, S2: 883, S3: 880, R1: 890, R2: 892, R3: 895)