9/8 Cautiously Bullish. 400 Buying | 150 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Neutral. 20% Weekly is Neutral.
The market digests softer-than-expected August payrolls reinforcing strong expectations for a September rate cut, despite some hawkish Fed commentary. The S&P 500 and Nasdaq set intraday records but faded into the close amid “sell the news” dynamics, while small- and mid-cap indices outperformed.
Sector-wise, real estate led with a 1.0% gain, recovering from earlier losses, while energy and financials lagged on weaker crude prices and concerns over loan demand. Technology showed mixed signals with strong semiconductor earnings offset by pressure on some chipmakers. Volatility remains subdued, supporting the cautious bullish tone.
Upcoming catalysts include Monday’s July Consumer Credit report and Tuesday’s 3-year Treasury auction, which may influence rate cut sentiment and bond yields.
Key Takeaway:
Traders should focus on selective long setups in sectors showing resilience like real estate and semiconductors, while managing risk amid mixed breadth and fading intraday momentum. Watch key support levels near recent 50SMA readings and be cautious of “sell the news” pullbacks. Position sizing and stop discipline remain critical given the market’s indecision around the Fed’s next moves.
Watchlist
Continuation: UUUU (S1: 11.5, S2: 11.5, S3: 11.5, R1: 11.5, R2: 11.5, R3: 11.5)
HUBS (S1: 485, S2: 486.5, S3: 487.5, R1: 488, R2: 490, R3: 493)
Anticipation: GOOGL (S1: 233, S2: 232, S3: 231, R1: 234.5, R2: 235.5, R3: 237)
TTWO (S1: 239, S2: 238, S3: 237, R1: 241, R2: 241.5, R3: 242.5)