1/7 Cautiously Bullish. 500 Buying | 200 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Bullish. 20% Weekly is Bullish.
The market extended gains with major indices hitting record highs, led by strong momentum in semiconductors and cyclical sectors. Memory storage stocks surged on robust guidance revisions, fueling enthusiasm around the AI buildout theme. Despite solid tech sector gains, the leadership is broadening beyond mega-cap growth names.
Materials and healthcare sectors posted the strongest gains, supported by metals rally and regulatory approvals, while energy and communication services lagged amid geopolitical and commodity headwinds. Volatility remains subdued, reflecting calm investor sentiment.
Key catalysts ahead include Wednesday’s ADP Employment Change, ISM Non-Manufacturing Index, and Factory Orders data, which could influence market momentum.
Key Takeaway:
Focus on swing setups in leading sectors like semiconductors, healthcare, and materials where volume and price momentum align. Watch for pullbacks near support zones in high-momentum names for entries, especially in memory and AI-related stocks. Avoid fading broad market strength and be cautious with energy and communication sectors until clearer setups emerge. Maintain tight stops below key intraday support levels to manage risk amid mixed sector performance.
Watchlist
Continuation: VRTX (S1: 467, S2: 465, S3: 464, R1: 469, R2: 472, R3: 475)
Anticipation: UEC (S1: 14.25, S2: 14.20, S3: 14.10, R1: 14.49, R2: 14.60, R3: 15.00)