10/27 Very Bullish. 450 Buying | 100 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Bullish. 20% Weekly is Bullish.
Rate-cut optimism following softer-than-expected September CPI fueled record highs in the major indexes, led by mega-cap tech and broad market strength. The S&P 500, Nasdaq, and Dow all closed at intraday and all-time highs, supported by expectations for two additional Fed cuts this year and improving U.S.-China trade sentiment ahead of next week’s Xi-Trump meeting.
Technology (+1.6%) and communication services (+1.3%) sectors outperformed, driven by strong mega-cap earnings beats and bullish news flow from Intel, AMD, and Alphabet. Financials (+1.1%) and utilities (+1.2%) also showed solid gains, while energy (-1.0%) and materials (-0.6%) lagged amid profit-taking despite a strong weekly run. Volatility remains subdued with VXX stable, supporting a constructive environment for momentum trades.
Upcoming catalysts include Monday’s Durable Goods Orders and large Treasury auctions, with focus building toward next week’s FOMC decision amid dovish Fed expectations.
Key Takeaway:
Swing traders should focus on continuation setups in high-momentum names within tech, communication services, and select cyclical sectors showing late-day strength like autos and crypto-adjacent plays. Watch for pullback entries near support levels with tight stops, especially in names showing strong relative volume and higher lows. Avoid chasing names that showed late-day distribution or failed to hold intraday support, notably mega-cap tech fading into close. Manage risk prudently ahead of next week’s Fed meeting and geopolitical events.
Watchlist
Continuation: CIFR (S1: 20.5, S2: 20.5, S3: 20.0, R1: 20.5, R2: 20.5, R3: 21.0)
Anticipation: SYK (S1: 382, S2: 381.5, S3: 380, R1: 384, R2: 386.5, R3: 389)