12/30 Bearish. 150 Buying | 480 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Neutral.
The market started the final week of 2025 with a broad pullback after last week’s rally, led by profit-taking in mega-cap tech and AI-related names despite no major new catalysts. Semiconductors showed mixed action but MU displayed strong momentum into the close, while energy was the lone sector with notable gains supported by rising crude oil prices. Volatility (VXX) ticked higher, reflecting cautious sentiment amid geopolitical tensions and profit-taking pressure.
Tech mega-caps like GOOGL/GOOG held steady but lacked strong momentum; healthcare equipment and select small/micro-cap bios showed pockets of strength; defense and industrials were range-bound or soft; energy and materials faced divergent moves with energy up and metals down sharply.
Upcoming catalysts include Tuesday’s FHFA and Case-Shiller Home Price Index, Chicago PMI, Consumer Confidence, and Job Openings data, which could influence market direction in a thin holiday environment.
Key Takeaway:
Traders should remain cautious and focus on high-probability setups in leadership semis like MU, which shows clear volume-backed continuation potential, and select healthcare names like TMO and PASG. Avoid chasing weak mega-cap tech or defensive sectors lacking momentum. Use tight stops and smaller size due to thin liquidity and elevated volatility. Wait for clean breakouts or retests near support zones before committing.
Watchlist
Continuation: MU (S1: 293.5, S2: 292.5, S3: 291.0, R1: 295.0, R2: 296.5, R3: 298.0)
Anticipation: BE (S1: 87.5, S2: 87.0, S3: 86.5, R1: 89.0, R2: 89.5, R3: 90.0)