11/11 Cautiously Bullish. 400 Buying | 150 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Bullish – Caution. 20% Weekly is Bearish – Caution.
Stocks started the week with a strong rally led by mega-cap tech and communication services, supported by broad market participation and renewed optimism around ending the government shutdown. The S&P 500 and Nasdaq are near flat month-to-date levels, reflecting constructive momentum but some caution given mixed signals in the 20% breadth study.
Healthcare showed leadership with strong accumulation in distributors and large-cap pharma, while semiconductors and tech remain in focus due to AI optimism. Defensive sectors like consumer staples and utilities lagged, confirming a risk-on tilt. Volatility remains subdued with VXX declining, reinforcing positive momentum.
The Senate’s procedural vote to end the government shutdown is a key catalyst, with a final funding deal expected soon. Earnings from AMD’s financial analyst event and multiple healthcare and tech companies also warrant attention this week.
Key Takeaway:
Swing traders should favor continuation setups in mega-cap tech and healthcare names showing strong volume and momentum, while managing risk given mixed intermediate breadth signals. Watch for pullbacks to support levels in leaders like CBOE and CAH for tactical entries, and avoid defensive sectors showing weakness. Maintain stops below key intraday demand zones to adapt to any volatility from political developments.
Watchlist
Continuation: CBOE (S1: 258, S2: 257, S3: 256, R1: 260, R2: 261.5, R3: 263)
Anticipation: ARGX (S1: 867.5, S2: 865.5, S3: 860.5, R1: 870, R2: 875, R3: 880)