7/31 Bearish. 200 Buying | 325 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bearish.
The market retreated following the FOMC’s decision to hold rates steady and Fed Chair Powell’s remarks that lowered September rate cut expectations, triggering selling pressure especially in cyclicals. The Nasdaq managed a slight gain, but broad indices closed weaker amid fading early optimism and rising Treasury yields.
Sector action showed defensive strength in utilities and modest rebounds in technology and communication services, while materials, real estate, and energy led losses on profit-taking and macro uncertainty. Volatility remains contained with VXX declining, supporting a cautious but fragile environment.
Tomorrow’s economic calendar features June Personal Income, Spending, and PCE data, plus July Chicago PMI, which could influence near-term market direction.
Key Takeaway:
Swing traders should remain cautious given bearish breadth and reduced rate cut odds. Focus on defensive sectors like utilities and selective technology names showing relative strength. Avoid overexposure to beaten-down cyclicals until confirmed support holds. Watch volume spikes near key support/resistance for tactical entry points amid ongoing volatility.
Watchlist
Continuation: TSM (S1: 242, S2: 241.5, S3: 241, R1: 243.5, R2: 244, R3: 244)
Anticipation: AVGO (S1: 300, S2: 298, S3: 295, R1: 302, R2: 304, R3: 306)