1/8 Cautiously Bullish. 350 Buying | 210 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Bullish. 20% Weekly is Bullish.
After a midweek pullback with cyclical sectors losing steam, mega-cap tech and healthcare leadership helped limit broad market declines and kept the S&P 500 near record highs. Defensive sectors like utilities and healthcare showed resilience amid rotation away from energy, financials, and industrials. Volatility (VXX) stabilized, suggesting a watchful but non-panicked market.
Uranium and select semiconductor power stocks demonstrated strong momentum, while defense and clean energy sectors faced selling pressure. Crude oil weakness and geopolitical headlines around Venezuelan oil supply added to sector-specific volatility.
Upcoming catalysts include Thursday’s economic data (productivity, labor costs, trade balance) and a busy earnings calendar next week, especially in financials and industrials.
Key Takeaway:
Focus on quality leaders in mega-cap tech, healthcare, and uranium/mining names showing steady accumulation and volume support. Avoid defense and clean energy sectors for now due to clear distribution and risk-off signals. Use pullbacks near identified support levels for entries, with tight stops below key intraday floors. Position size cautiously on speculative microcaps and wait for confirmed volume-backed breakouts above resistance zones.
Watchlist
Continuation: AMKR (S1: 52, S2: 52.5, S3: 51.5, R1: 53, R2: 53.5, R3: 54)
Anticipation: CCJ (S1: 103.5, S2: 103, S3: 102.5, R1: 104, R2: 105, R3: 106)