10/13 Bearish. 150 Buying | 1520 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bullish – Caution.
Tariff fears and renewed U.S.-China tensions triggered the sharpest market pullback in months, with broad selling across tech, discretionary, and semiconductors amid elevated volume and rising volatility. Defensive staples and rare earth miners bucked the trend, showing relative strength. The market remains pressured ahead of Tuesday’s NFIB Small Business Optimism Index and midweek manufacturing and inventory data.
Healthcare showed mixed signals with biotech pockets like CGEM and TARS holding up, while payers and some distributors faced distribution. Small/micro-cap momentum names TBH and MLTX closed strong late, signaling potential short-term continuation. Energy and clean tech sectors showed weakness and distribution.
Key Takeaway:
Swing traders should prioritize defensive and niche momentum setups amid broad risk-off. Focus on high-probability continuation plays like TBH and MLTX, while avoiding high-beta tech and energy names under selling pressure. Tight stops below key support levels are essential given the heavy selling and elevated volatility. Watch for potential relief rallies in biotech and data-center REITs if market stabilizes.
Watchlist
Continuation: TBH (S1: 2.35, S2: 2.25, S3: 2.20, R1: 2.45, R2: 2.50, R3: 2.60)
Anticipation: CGEM (S1: 7.20, S2: 7.10, S3: 7.05, R1: 7.35, R2: 7.50, R3: 7.70)