8/28 Cautiously Bullish. 200 Buying | 120 Selling.
% Stocks Over 50SMA is Bullish – Caution. Primary Indicator is Bullish. 20% Weekly is Bullish.
The market closed near record highs with broad-based gains led by small- and mid-caps, supported by steady rate cut expectations. Technology and consumer discretionary sectors show strength, while energy outperformed with crude oil gains. Volatility remains subdued as VXX stabilizes, reflecting cautious optimism ahead of NVIDIA’s earnings and Friday’s PCE inflation data.
Energy (+1.2%) led sector gains, while communication services lagged slightly. Technology showed steady improvement, driven by software stocks like MongoDB surging after a strong beat-and-raise quarter. Retail also gained on solid earnings from Kohl’s. Overall, sector rotation favors growth areas with institutional volume supporting tech leaders CRM and ASML.
Key upcoming catalysts include NVIDIA’s earnings after hours and the Friday PCE inflation report, both likely to influence near-term market direction and volatility.
Key Takeaway:
Focus on tech and consumer discretionary sectors exhibiting strong volume and momentum, especially names showing confirmed breakouts like CRM and ASML. Exercise caution given the cautious market tone and upcoming key earnings and inflation data. Use tight stops near support levels to manage risk, and consider scaling into positions on pullbacks near technical support zones. Avoid sectors with mixed signals or weak volume until clearer trends emerge post-catalysts.
Watchlist
Continuation: CRM (S1: 248, S2: 249, S3: 247.5, R1: 251, R2: 252, R3: 250.5)
Anticipation: MPWR (S1: 865, S2: 860, S3: 855, R1: 870, R2: 875, R3: 880)