12/16 Bearish. 130 Buying | 600 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bearish.
Tech weakness weighed on major indexes with mega-cap names like Broadcom, Oracle, Apple, and Microsoft retreating, while defensive sectors such as healthcare, utilities, and consumer staples showed relative strength amid rotation. Energy also weakened alongside lower crude prices. Volatility remained subdued with no major spikes despite the cautious market tone.
Financials and insurance sectors showed pockets of strength with momentum setups in CB, PGR, and FFIV, while semiconductors and biotech faced late-day selling pressure. Industrials like SAIC and steady large-cap healthcare (JNJ) held up better. Retail was mixed with reversal signs in VSCO but weakness in ANF.
Attention tomorrow centers on the November Employment Situation Report amid Fed commentary suggesting possible overstated hiring figures. This data will likely dictate near-term market direction.
Key Takeaway:
Expect continued pressure on tech and growth sectors; focus on defensive and quality names showing relative strength like healthcare and select industrials. Use tight stops on higher-beta names due to late-day risk-off flows. Watch for dip-buying opportunities near key support levels in insurance and industrial stocks while avoiding chasing fading momentum in semiconductors and biotech. Position sizing should be conservative until breadth improves post-employment data.
Watchlist
Continuation: SAIC (S1: 100.5, S2: 100.5, S3: 100.5, R1: 101.5, R2: 102, R3: 103)
Anticipation: CB (S1: 311.5, S2: 311, S3: 309.5, R1: 312, R2: 313, R3: 315)