12/9 Cautiously Bullish. 280 Buying | 220 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish. 20% Weekly is Neutral.
The market edges lower amid cautious positioning ahead of Wednesday’s FOMC rate cut decision, with tech leadership limiting losses despite broad sector weakness.
Information Technology (+1.0%) stands out as the lone sector gaining, while Communication Services (-1.8%) and Consumer Discretionary (-1.5%) lag amid mega-cap selling and downgrade pressure. Volatility remains subdued with VXX near lows, supporting a generally calm risk environment.
Tomorrow’s catalyst: FOMC meeting with an expected 25-basis-point rate cut but a potentially hawkish tone on future easing. November NFIB Small Business Optimism and Treasury reopenings also scheduled.
Key Takeaway:
Traders should focus on selective tech and industrial names showing late-day accumulation and volume expansion for 1–3 day continuation plays. Avoid fading weak consumer discretionary and communication names under downgrade pressure. Manage risk tightly given mixed breadth and upcoming Fed event, favoring entries near support with clear stop-loss levels.
Watchlist
Continuation: AMD (S1: 220, S2: 219.5, S3: 219.5, R1: 221, R2: 222, R3: 223)
ETN (S1: 343, S2: 342, S3: 341.5, R1: 344, R2: 345.5, R3: 349)
Anticipation: ASML (S1: 1116, S2: 1114, S3: 1110, R1: 1120, R2: 1125, R3: 1130)
QCOM (S1: 174.5, S2: 174, S3: 173.5, R1: 175, R2: 175.5, R3: 176)