12/11 Very Bullish. 500 Buying | 200 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Bullish. 20% Weekly is Neutral.
The market rallied strongly following the FOMC’s 25 bps rate cut and dovish outlook, lifting major indices close to all-time highs and sparking small-cap record levels. Optimistic GDP growth revisions and Fed Treasury bill purchases underpin sustained risk appetite.
Industrials led with 1.8% gains fueled by GE Vernova’s breakout on robust AI-driven power demand and capital returns, while semiconductors and semiconductor equipment showed strong momentum and volume expansion. Consumer discretionary and financials also posted solid advances, despite some profit-taking in tech mega-caps. VXX declined, confirming subdued volatility and a risk-on environment.
Watch for Thursday’s Weekly Initial Claims and September Wholesale Inventories to confirm economic momentum.
Key Takeaway:
Focus on continuation setups in semiconductors (AMAT, MU) and industrials (ETN, CAT) where momentum and volume align with the bullish tape. Use pullbacks near support levels for entries, maintaining tight stops below key intraday demand zones. Avoid extended tech names showing late-session fade and be prepared for mild profit-taking into resistance. Small caps and airlines (UAL) remain attractive for swing entries if risk sentiment holds.
Watchlist
Continuation: AMAT (S1: 274.5, S2: 271.5, S3: 268.5, R1: 276, R2: 279, R3: 282)
Anticipation: MU (S1: 263, S2: 261.5, S3: 259, R1: 264, R2: 266, R3: 268.5)