10/2 Cautiously Bullish. 450 Buying | 190 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Neutral.
The market showed resilience amid the government shutdown, with the S&P 500 and Nasdaq reaching record highs, driven by dovish Fed expectations after weak ADP payroll data. Tech and healthcare sectors led gains, while materials and financials lagged. Semiconductor and cybersecurity stocks displayed strong late-day momentum, signaling potential continuation. Volatility remains subdued, and Treasury yields pulled back modestly.
Health care surged on Pfizer and Eli Lilly optimism; semiconductors and cyber showed leadership into the close. Consumer discretionary was mixed but supported by Tesla and Nike ahead of earnings. Materials and financials showed relative weakness.
Upcoming catalysts include Thursday’s Weekly Initial Claims and Factory Orders data, which may influence short-term sentiment ahead of Friday’s delayed Employment Situation Report.
Key Takeaway:
Focus on momentum names in semiconductors (AMAT, LRCX), cybersecurity (CRWD, ZS), and select small/mid caps showing high-volume breakouts (AMPX, APLD). Watch for pullbacks to key support zones as entry points rather than chasing extended moves. Avoid weaker sectors like materials and financials until clear signs of stabilization. Manage risk tightly with stops below recent demand levels given mixed breadth and bearish 50SMA readings.
Watchlist
Continuation: AMPX (S1: 12, S2: 11.5, S3: 11.5, R1: 12.5, R2: 13, R3: 13)
Anticipation: ZS (S1: 304, S2: 303, S3: 302.5, R1: 305.5, R2: 307, R3: 308.5)