7/23 Cautiously Bullish. 500 Buying | 100 Selling.
% Stocks Over 50SMA is Bullish – Caution. Primary Indicator is Neutral. 20% Weekly is Bullish.
The market showed a mixed finish amid heavy earnings, with rotation favoring small- and mid-cap stocks while mega-cap tech lagged, keeping major averages subdued but with the S&P 500 closing at a new record. Healthcare, real estate, and utilities led sector gains, supported by strong earnings and lower Treasury yields. Volatility remains low as VXX holds steady, reflecting cautious investor positioning ahead of a $13B 20-year Treasury auction.
Key Takeaway:
Focus on sectors showing strength such as healthcare and homebuilders, which are benefiting from solid earnings and operational resilience despite macro uncertainties. Avoid large-cap tech weakness and stocks with poor guidance like Lockheed Martin and Philip Morris. Use support levels and watch for continuation breakouts in industrials and healthcare names showing volume momentum. Manage risk tightly given mixed breadth and neutral primary momentum.
Watchlist
Continuation: LII (S1: 613, S2: 615, S3: 617, R1: 620, R2: 621, R3: 625)
Anticipation: NVTS (S1: 8.5, S2: 8.0, S3: 8.0, R1: 8.5, R2: 8.8, R3: 9.0)