12/18 Bearish. 150 Buying | 560 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bearish. 20% Weekly is Bearish.
Tech and mega-caps led sharp declines, dragging major indexes lower as the S&P 500 lost its 50-day moving average. Information Technology (-2.2%) and Communication Services (-1.9%) sectors faced heavy selling amid AI infrastructure funding concerns. Energy (+2.2%) bucked the trend with a modest rebound. Volatility remains moderate with VXX stable near 30. Key economic data due Thursday includes November CPI, Core CPI, and weekly jobless claims, which could influence near-term market direction.
Sector Overview:
Financials and insurance showed selective late-day strength in high-quality names (CB, SPGI, RGA), while restaurants and certain materials lagged. Software/IT services (ADBE) and lodging (HLT) demonstrated accumulation into the close. Industrials and consumer discretionary were mixed with some weakness in small-cap retail and auto. Energy’s bounce was driven by geopolitical developments around Venezuelan oil sanctions.
Upcoming Catalyst:
Thursday’s November CPI and Core CPI releases at 8:30 ET, weekly Initial Claims, and December Philadelphia Fed survey will be key for gauging inflation and labor market momentum.
Key Takeaway:
Traders should remain cautious amid broad market weakness and fading tech leadership. Focus on high-quality financials and selective software/lodging names showing late-session accumulation for potential swing entries. Avoid heavy exposure to pressured AI-related tech and volatile consumer discretionary. Use support levels and volume confirmation before committing, given the bearish momentum and upcoming CPI data risk.
Watchlist
Continuation: ADBE (S1: 354.0, S2: 353.5, S3: 352.5, R1: 355.0, R2: 357.0, R3: 360.0)
Anticipation: TRV (S1: 289.0, S2: 288.0, S3: 287.5, R1: 290.5, R2: 292.0, R3: 294.0)