10/21 Cautiously Bullish. 525 Buying | 100 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Neutral. 20% Weekly is Neutral.
The market is near record highs with broad gains led by tech and financials, while small- and mid-caps also show strength. Renewed optimism on U.S.-China trade and easing government shutdown concerns support positive sentiment ahead of Friday’s CPI release.
Tech and communication services sectors outperformed, paced by chipmakers and mega-cap growth names, despite mixed semiconductor equipment action late in the day. Financials and regional banks showed solid buying, while consumer staples and utilities lagged slightly. Volatility remains subdued, supporting a stable environment for rotation into cyclicals and growth.
No major economic data is scheduled for Tuesday, but earnings from multiple large caps including GE, GM, LMT, and NFLX will draw focus.
Key Takeaway:
Traders should focus on leadership names showing clear momentum and relative strength, especially in semiconductors (KLAC), biotech (ALNY), and consumer discretionary (BOOT). Avoid chasing late-session weakness in broad semi ETFs and industrials fading into the close. Use support zones as tight entry points and honor stop-losses amid mixed sector rotation. Watch for follow-through on tech and financial earnings to confirm the bullish bias.
Watchlist
Continuation: KLAC (S1: 1152, S2: 1148.5, S3: 1144, R1: 1158, R2: 1161.5, R3: 1166)
Anticipation: TSLA (S1: 445.5, S2: 443, S3: 442.5, R1: 447, R2: 448, R3: 450)