1/15 Cautiously Bullish. 380 Buying | 210 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Bullish. 20% Weekly is Bullish – Caution.
The market showed a pullback amid rotation out of mega-cap tech after inflation data confirmed no immediate rate cuts, keeping sentiment cautious. Energy (+2.3%) and defensive sectors like consumer staples (+1.2%) and real estate (+1.1%) led gains, while mega-cap tech and consumer discretionary lagged. Volatility eased with VXX declining, supporting a cautiously bullish tone.
Key economic data including weekly initial claims, Philly Fed, and Empire State surveys are due Thursday, which could influence near-term market direction.
Key Takeaway:
Focus on quality momentum names in semiconductors and aerospace showing late-session accumulation, while mega-cap tech remains under pressure. Favor swing entries on dips near support in strong sectors like energy and select industrials. Avoid chasing small-cap volatility and mega-cap tech weakness until clearer trend confirmation. Use tight stops near intraday support levels to manage risk in this cautious environment.
Watchlist
Continuation: TDG (S1: 1415, S2: 1414, S3: 1405, R1: 1424, R2: 1433, R3: 1443)
Anticipation: AMAT (S1: 300, S2: 298.5, S3: 297.5, R1: 301.5, R2: 303, R3: 305)