9/29 Cautiously Bullish. 300 Buying | 100 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bullish – Caution.
The market ended the week on a resilient note, overcoming mega-cap weakness as solid personal income and spending data supported a cautiously optimistic outlook. Despite some softness in tech giants, broad sector strength and expectations of further Fed rate cuts underpin a positive bias.
Consumer discretionary, utilities, materials, and real estate sectors led gains, while communication services and consumer staples lagged; energy showed late profit-taking after a strong weekly rally. Volatility (VXX) declined modestly, indicating reduced market fear.
Monday’s catalyst is the August Pending Home Sales report, with limited other economic data and a light earnings calendar that includes Carnival (CCL) pre-market and Jefferies (JEF) after-hours.
Key Takeaway:
Focus on continuation setups in mid and small-cap names showing volume-backed momentum, especially in semiconductors, biotech, and managed care. Avoid fading mega-cap tech and communication services until clear support holds. Use tight stops below key intraday supports to manage risk amid mixed breadth and sector rotation.
Watchlist
Continuation: SKYT (S1: 17.5, S2: 17.6, S3: 17.9, R1: 18.25, R2: 18.5, R3: 19)
Anticipation: AXON (S1: 703.5, S2: 705.5, S3: 709.4, R1: 712.5, R2: 715, R3: 722)