9/16 Cautiously Bullish. 350 Buying | 200 Selling.
% Stocks Over 50SMA is Bullish – Caution. Primary Indicator is Bullish. 20% Weekly is Bullish.
Mega-cap strength drove new highs in the S&P 500 and Nasdaq ahead of this week’s Fed meeting, with gains concentrated in large tech and consumer discretionary names amid lighter volume. Communication services led (+2.3%) on Alphabet’s record market cap, while consumer staples and health care lagged. Volatility remains subdued, reflecting cautious positioning ahead of key economic data and the FOMC decision.
Tuesday brings August Retail Sales, Industrial Production, and NAHB Housing Market Index, all closely watched for signs of economic momentum.
Key Takeaway:
Focus on mega-cap tech and communication services for continuation setups, especially names like GOOGL and QQQ showing strong volume and momentum near resistance. Avoid defensive sectors showing weakness and watch for volume confirmation on breakouts. Manage risk tightly with stops below key support as the market digests Fed uncertainty and mixed economic signals.
Watchlist
Continuation: GOOGL (S1: 249, S2: 248.5, S3: 247.5, R1: 251.5, R2: 252, R3: 253)
Anticipation: NVDA (S1: 177, S2: 176.5, S3: 176, R1: 178, R2: 178.5, R3: 179)