10/9 Cautiously Bullish. 480 Buying | 90 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish. 20% Weekly is Bullish.
The market remains cautiously bullish as strong tech and semiconductor momentum drove the S&P 500 and Nasdaq to record highs, despite bearish breadth under the 50-day SMA. The tech sector led gains with notable strength in AI-related semiconductors and infrastructure, while energy and financials lagged. Volatility (VXX) declined, signaling reduced fear and supporting the positive tech-led sentiment.
Industrials and grid buildout names showed steady volume-driven strength late in the session, while consumer and biotech sectors were mixed or weak. Semiconductor hardware (ARM, DELL) and AI infrastructure (PWR, EME) posted strong power-hour breakouts with volume confirmation, signaling continuation potential. Defensive sectors like healthcare and financials showed rotation out, and energy remained soft despite higher oil prices.
Tomorrow’s key catalyst is the Weekly Initial Claims report, though the government shutdown may delay data release, leaving earnings and sector rotation as primary market drivers.
Key Takeaway:
Focus on tech and semiconductor continuation plays supported by strong late-day volume and close near highs, especially AI hardware and infrastructure stocks. Use dip-buy entries near identified support zones on ARM, DELL, and PWR, with stops just below key demand levels. Avoid weaker consumer staples, energy, and biotech names showing distribution. Manage risk tightly in smaller caps and speculative names due to liquidity and volatility.
Watchlist
Continuation: ARM (S1: 166.0, S2: 163.0, S3: 160.0, R1: 168.5, R2: 170.0, R3: 172.5)
Anticipation: SHOP (S1: 165.5, S2: 165.0, S3: 164.5, R1: 167.5, R2: 168.5, R3: 170.0)