9/15 Cautiously Bullish. 250 Buying | 200 Selling.
% Stocks Over 50SMA is Bullish – Caution. Primary Indicator is Bullish. 20% Weekly is Neutral.
Mega-cap tech strength continues to support record highs in Nasdaq and S&P 500 despite mixed breadth and modest sector rotation. Consumer discretionary, technology, and communication services led gains, while healthcare and small/mid caps lagged. Volatility remains subdued with VXX stable, signaling contained risk for now.
Energy and industrial sectors show signs of potential breakout with rising volume, particularly in names like NRGV and MU. Meanwhile, regulatory concerns loom over the proposed Warner Bros/Paramount Skydance merger, injecting some sector-specific uncertainty. Market focus shifts to the upcoming FOMC meeting where a 25bps cut is priced in, but Powell’s commentary will be key for rate cut expectations.
Key Takeaway:
Traders should favor mega-cap tech and consumer discretionary names showing momentum while exercising caution in healthcare and small/mid caps under pressure. Watch for volume confirmation near key support/resistance levels in tech and energy sectors for swing entries. Maintain tight stops below support levels given mixed breadth and pending Fed catalyst. Avoid overexposure to names facing regulatory risks.
Watchlist
Continuation: MU (S1: 157, S2: 157.5, S3: 157.5, R1: 158.5, R2: 159, R3: 159.5)
Anticipation: BE (S1: 66, S2: 65.5, S3: 65, R1: 67, R2: 67.5, R3: 68)