7/30 Bearish. 160 Buying | 525 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bullish – Caution.
The market showed early strength with record intraday highs in the S&P 500 and Nasdaq but succumbed to a late-morning sell-off, closing lower amid broad sector weakness. Defensive sectors like real estate, utilities, energy, and consumer staples outperformed, supported by a rally in treasuries and rising crude oil prices. Technology and consumer discretionary sectors faced pressure despite earlier gains, reflecting cautious investor sentiment ahead of tomorrow’s FOMC policy statement and Q2 GDP release.
Energy led sector gains on a crude oil surge (+3.7%) amid geopolitical tensions, while industrials, health care, and financials lagged. Volatility (VXX) remained stable, consistent with consolidation in SPY and QQQ, signaling a market in wait-and-see mode. Earnings continue to influence individual stocks, with notable weakness in Whirlpool (WHR) due to dividend and guidance cuts.
Key catalysts for tomorrow include the FOMC rate decision, advance Q2 GDP data, and a heavy earnings slate, all poised to steer market direction.
Key Takeaway:
Swing traders should exercise caution given the bearish volume skew and late-session weakness despite technical bullish caution signals. Focus on defensive sectors showing relative strength and be prepared for increased volatility around the Fed announcement. Avoid chasing momentum in overextended tech names and use pullbacks near support levels for entries in continuation setups.
Watchlist
Continuation: AMD (S1: 177, S2: 178, S3: 179, R1: 180, R2: 181.5, R3: 183)
Anticipation: VRT (S1: 142.5, S2: 142.75, S3: 142.5, R1: 143.5, R2: 143.85, R3: 144)