7/22 Cautiously Bullish. 350 Buying | 200 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bullish – Caution.
The market opened strong on earnings beats and optimism around trade deals, pushing major indexes to record highs, but afternoon selling trimmed gains leading to mixed closes. Communication Services led with solid gains, boosted by Verizon and Alphabet ahead of key earnings, while Energy and Health Care lagged. Treasury yields fell, supporting risk assets, though narrow participation and weakness in small caps suggest caution.
Communication Services (+1.9%) and Consumer Discretionary (+0.6%) outperformed, while Energy (-0.9%) and Health Care (-0.6%) underperformed; volatility rose late session as VXX increased amid afternoon selling pressure.
No major economic data due tomorrow, but earnings from Cleveland-Cliffs, Domino’s, Roper, and Verizon will be key catalysts to watch.
Key Takeaway:
Focus on stocks and sectors showing relative strength like Communication Services and defensive names holding up. Avoid chasing late-session weakness in small and mid caps as participation narrows. Use support levels to manage risk and watch for continuation setups in names with strong volume and momentum ahead of upcoming earnings.
Watchlist
Continuation: WAVE (S1: 8.0, S2: 8.5, S3: 8.5, R1: 8.5, R2: 8.5, R3: 8.8)
Anticipation: PLTR (S1: 150, S2: 148.5, S3: 147, R1: 154, R2: 155.5, R3: 157)