10/30 Cautious Bearish. 250 Buying | 510 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bullish – Extreme Caution.
The market showed strong momentum in mega-cap tech and AI-related stocks, led by NVIDIA and semiconductors, but softened after the Fed’s cautious commentary on December rate cuts, tempering broader risk appetite.
Technology and Communication Services sectors outperformed with solid volume, while Real Estate, Consumer Staples, and Financials lagged sharply; volatility remained contained with VXX stable and QQQ near highs.
Upcoming catalyst: Thursday’s advance Q3 GDP and Initial Jobless Claims will be key for confirming economic momentum and Fed policy direction.
Key Takeaway:
Focus on high-momentum growth names in tech and semiconductors that are showing strong relative strength and volume support, such as optical semis and AI hardware. Exercise caution on broader market exposure given mixed sector leadership and Fed uncertainty. Use tight stops and prioritize setups that hold key support levels on pullbacks, avoiding weak cyclical sectors and defensive names showing heavy selling pressure.
Watchlist
Continuation: LITE (S1: 214, S2: 212, S3: 210.5, R1: 217, R2: 219.5, R3: 223.5)
Anticipation: AVGO (S1: 382, S2: 379, S3: 374.5, R1: 384.5, R2: 386.5, R3: 391)