8/26 Cautiously Bullish. 210 Buying | 160 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Bullish. 20% Weekly is Neutral.
The market pulled back modestly after Friday’s record highs, with profit-taking weighing on the S&P 500 and Dow, while Nasdaq showed relative resilience led by mega-cap tech names like Alphabet, NVIDIA, and Tesla. Defensive sectors such as consumer staples, healthcare, and utilities lagged notably, pressured by headline M&A news in beverages, while energy and communication services posted modest gains. Volatility remains contained but shows a slight uptick, reflecting cautious investor positioning ahead of Friday’s key PCE inflation report.
Tech and pharmaceuticals sectors exhibit mixed but active trading with elevated volume and volatility, signaling potential rotation and selective accumulation. Small and mid caps retreated after recent strength, indicating some profit-taking amid steady rate cut expectations. Watch for durable goods and housing data Tuesday morning for further market direction.
Key Takeaway:
Traders should focus on tech and pharma stocks showing volume-based momentum and be cautious with defensive sectors that remain weak. Maintain tight stops near support levels as the market digests profit-taking and awaits key economic data. Avoid chasing small caps for now given recent pullbacks and elevated volatility. Position for potential continuation in mega-cap tech ahead of NVIDIA earnings on Wednesday.
Watchlist
Continuation: POLA (S1: 2.0, S2: 1.9, S3: 1.8, R1: 2.15, R2: 2.25, R3: 2.35)
Anticipation: TIGR (S1: 12.5, S2: 12.5, S3: 12.5, R1: 12.8, R2: 12.9, R3: 13.0)