9/1 Bearish. 170 Buying | 200 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Neutral. 20% Weekly is Bullish – Caution.
The market closed August with a whimper after a strong month, showing consolidation and lack of buying interest ahead of the Labor Day holiday. Mega-cap and semiconductor weakness weighed heavily, while small and mid-caps also faltered in a light volume session. Despite sticky PCE inflation, expectations remain for a September rate cut, supported by Fed commentary.
Technology and Consumer Discretionary sectors underperformed notably, with the Philadelphia Semiconductor Index down 3.2%, while Health Care, Consumer Staples, and Real Estate showed relative strength. Volatility remains subdued with Treasury yields little changed.
Markets will be closed Monday for Labor Day. Tuesday brings August Manufacturing PMI and ISM data, which could influence market direction post-holiday.
Key Takeaway:
Traders should remain cautious given the bearish price action and weak volume on key sectors like semiconductors and mega-caps. Watch for support near 50SMA levels and monitor sector rotation into defensives such as Health Care and Consumer Staples. Avoid chasing rallies until clearer leadership emerges post-holiday. Use tight stops on longs and consider fading weakness in beaten-down tech names if volume picks up.
Watchlist
Continuation: HYMC (S1: 4.5, S2: 4.4, S3: 4.3, R1: 4.7, R2: 4.8, R3: 5.0)
Continuation: SYK (S1: 391, S2: 389, S3: 385, R1: 393, R2: 396, R3: 400)
Anticipation: LTRX (S1: 4.8, S2: 4.8, S3: 4.9, R1: 4.9, R2: 5.0, R3: 5.0)
Anticipation: TMC (S1: 5.3, S2: 5.3, S3: 5.3, R1: 5.4, R2: 5.5, R3: 5.6)