12/22 Cautious. 30 Buying | 20 Selling.
% Stocks Over 50SMA is Neutral. Primary Indicator is Neutral. 20% Weekly is Neutral.
Tech-led gains extended into year-end with solid breadth, while defensive sectors lagged; volatility eased as markets showed cautious optimism ahead of key economic data.
Technology and health care sectors demonstrated strength, notably semiconductors and biotech, while precious metals miners and defense stocks showed late-session weakness; VXX declined signaling reduced market fear.
Upcoming catalyst: Tuesday’s advance Q3 GDP and durable goods data, plus Treasury auctions on Monday and Tuesday, will be key for near-term market direction.
Key Takeaway:
Traders should focus on tech and biotech momentum names showing strong relative strength and volume, while avoiding precious metals and defense sectors lacking follow-through. Monitor key support/resistance levels on major indices and use tight stops on extended names. Position sizing and risk control are critical given mixed late-session liquidity and upcoming economic reports.
Watchlist
Continuation: CIEN (S1: 228.5, S2: 226.5, S3: 225.5, R1: 231.5, R2: 233, R3: 235.5)
Anticipation: CASY (S1: 555.5, S2: 554.5, S3: 553.5, R1: 557.5, R2: 560, R3: 563)