11/6 Cautiously Bullish. 400 Buying | 200 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bearish.
The market staged a broad rebound led by communication services and consumer discretionary sectors, despite late weakness in tech. Mega-cap tech names showed mixed performance with notable strength in semiconductors and chipmakers like AMD and Micron. Treasury yields rose on upbeat economic data, signaling resilience in growth but caution on rate cuts.
Communication services (+1.7%) and consumer discretionary (+1.0%) led gains, while information technology slipped slightly late. Semiconductor stocks outperformed with the PHLX Semiconductor Index up 3%. Volatility remained subdued as VXX held steady, reflecting calm sentiment despite some late-day risk-off in SPY.
Key catalysts ahead include delayed economic data releases on productivity, labor costs, and wholesale inventories, plus a Supreme Court hearing on tariff authority. Earnings continue with a heavy slate including IBM, LDOS, and SPGI, which showed late-session strength and may offer continuation setups.
Key Takeaway:
Focus on selective strength in industrials and quality large caps showing accumulation into late-day weakness (IBM, FERG, WWD). Tech remains mixed; avoid broad tech exposure until late-day distribution in SPY stabilizes. Watch for pullbacks near support on strong names with relative volume and momentum. Manage risk tightly on speculative micro-caps like ENTX.
Watchlist
Continuation: IBM (S1: 306, S2: 305.5, S3: 304.5, R1: 307.5, R2: 308, R3: 309.5)
Anticipation: LDOS (S1: 195.5, S2: 195, S3: 194.5, R1: 197.5, R2: 198, R3: 200)