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, trade optimism, and lower Treasury yields pushing major indexes to new highs, but afternoon profit-taking led to a mixed finish and narrowed participation. Communication Services and Consumer Discretionary sectors showed relative strength, while Energy, Health Care, Financials, and Industrials lagged amid late-session selling pressure. Rising VXX signals increased volatility and caution.
No major economic data is scheduled tomorrow, but earnings from key names including AT&T and Alphabet loom, which could drive sector-specific moves and market direction.
Key Takeaway:
Swing traders should focus on high-momentum sectors like Communication Services and Consumer Discretionary that held gains despite afternoon selling. Use intraday support levels to enter on pullbacks, but be cautious given the narrow breadth and rising volatility. Avoid chasing weaker sectors or small caps showing late-session weakness. Position sizing and tight stops are advised ahead of key earnings catalysts.
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)