10/14 Cautiously Bullish. 360 Buying | 90 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bullish – Caution.
The market staged a broad-based rebound recovering roughly half of Friday’s losses amid easing U.S.-China trade tensions, led by tech and small/mid caps. Semiconductor strength, particularly Broadcom and NVIDIA, fueled IT sector gains, while consumer discretionary and communication services also advanced. Financials showed steady pre-earnings strength ahead of major bank reports tomorrow, which will be key for Q3 sentiment. Volatility (VXX) remained muted, supporting a cautiously constructive environment.
Life Sciences Tools and biotech faded late-day, favoring selective stock picking, while microcaps like SDST, TBH, and MGRX showed strong momentum and volume expansion for near-term continuation. Aerospace/defense (AVAV) and healthcare distributor WAT also displayed relative strength. Watch for potential pullbacks in cyclicals (MLM, METC) and healthcare names still under pressure.
Earnings catalysts include major banks JPM, GS, and C reporting pre-market, setting the tone for financial sector direction. Economic data remains light due to the government shutdown.
Key Takeaway:
Focus on names with confirmed late-day accumulation and volume spikes, especially in microcaps and select tech/defense stocks. Avoid fading biotech and cyclicals showing signs of reversal. Use tomorrow’s bank earnings to gauge broader market momentum, keeping stops tight on speculative small caps.
Watchlist
Continuation: SDST (S1: 5.10, S2: 5.00, S3: 4.75, R1: 5.20, R2: 5.40, R3: 5.65)
Anticipation: TRON (S1: 4.00, S2: 3.95, S3: 3.88, R1: 4.13, R2: 4.20, R3: 4.35)