9/22 Cautiously Bullish. 375 Buying | 350 Selling.
% Stocks Over 50SMA is Bullish – Caution. Primary Indicator is Bullish. 20% Weekly is Neutral.
Mega-cap strength continues to drive record highs despite negative breadth, with tech and communication sectors leading gains while small- and mid-caps lag. Volatility remains subdued as VXX shows stable activity, supporting risk-on sentiment.
Technology and communication services sectors show solid momentum, bolstered by strong volume and positive earnings, while energy underperforms amid sector-wide weakness.
No major economic data on Monday; focus remains on Tuesday’s flash PMIs and Treasury auctions for directional cues.
Key Takeaway:
Swing traders should focus on mega-cap tech and communication stocks showing strong volume and momentum, using support levels for entries while managing risk given mixed breadth and small-cap weakness. Avoid energy and smaller caps until clearer signs of strength emerge. Monitor volume spikes for continuation setups and be prepared for potential volatility around Tuesday’s economic releases.
Watchlist
Continuation: GOOG (S1: 255, S2: 254, S3: 253, R1: 257, R2: 258, R3: 259)
Anticipation: TSLA (S1: 425, S2: 423, S3: 420, R1: 427, R2: 430, R3: 435)