8/21 Cautiously Bearish. 160 Buying | 170 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bearish.
The market showed defensive sector strength as mega-cap tech and semiconductors underperformed, with a late-session recovery narrowing losses but leaving Nasdaq notably weak. Energy and consumer staples led gains amid rising oil prices, while growth sectors like tech and consumer discretionary faced selling pressure.
Technology and healthcare sectors display momentum with volume-supported rallies in names like ISRG and ADI, while energy and consumer discretionary sectors show mixed or weaker performance. Volatility (VXX) remains subdued, supporting cautious optimism despite underlying sector rotation.
Key upcoming catalyst is Fed Chair Powell’s speech at the Jackson Hole Symposium on Friday, with investors awaiting clues on monetary policy amid upcoming CPI and PPI data releases.
Key Takeaway:
Traders should focus on selective long entries in healthcare and technology stocks exhibiting strong volume and momentum, such as ISRG and ADI, while avoiding broad exposure to mega-cap tech and semiconductors showing weakness. Defensive sectors and energy may offer short-term stability, but caution is warranted ahead of Powell’s speech and inflation data that could trigger volatility shifts. Use support levels for entries and keep stops tight given mixed market breadth and bearish 50SMA readings.
Watchlist
Continuation:
ISRG (S1: 480, S2: 478.5, S3: 475, R1: 485.5, R2: 490, R3: 495)
ADI (S1: 244, S2: 242.5, S3: 240, R1: 246.5, R2: 248.5, R3: 250)
Anticipation:
LLY (S1: 699, S2: 695, S3: 690, R1: 705, R2: 710, R3: 715)
CRM (S1: 246, S2: 244.5, S3: 243, R1: 248, R2: 250, R3: 252)