8/12 Cautious. 250 Buying | 250 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Neutral.
The market showed early strength with the Nasdaq hitting an all-time high but retreated into modest losses by close amid cautious sentiment ahead of tomorrow’s July CPI data. Despite headlines on Fed rate cut prospects and trade developments, price action lacked conviction, reflecting investor indecision.
Technology and semiconductors showed mixed performance with intraday volatility; the semiconductor index dipped slightly despite positive earnings guidance from Micron. Defensive sectors like consumer staples and healthcare managed modest gains, while energy and real estate lagged. VXX volatility edged higher, signaling increased caution.
Tomorrow’s key catalyst is the July CPI release at 8:30 ET, which will likely drive near-term market direction amid ongoing geopolitical uncertainties and Fed Chair nominee speculation.
Key Takeaway:
Traders should remain cautious with tight stops, focusing on names showing relative strength and volume support. Avoid chasing breakouts without follow-through as the market digests mixed signals and awaits CPI. Defensive sectors offer relative stability, while tech and semis may provide selective swing opportunities on dips and volume spikes.
Watchlist
Continuation: ARDX (S1: 5.25, S2: 5.30, S3: 5.35, R1: 5.40, R2: 5.55, R3: 5.70)
Anticipation: SHOP (S1: 147.5, S2: 147.0, S3: 146.5, R1: 149.0, R2: 149.5, R3: 150.0)