8/13 Cautiously Bullish. 700 Buying | 150 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Bullish. 20% Weekly is Bullish – Extreme Caution.
The market extended gains following an in-line July CPI report, lifting the S&P 500 and Nasdaq to fresh highs amid strong breadth and a surge in small- and mid-cap stocks. Inflation data bolstered expectations for a September rate cut, fueling a risk-on environment with the Russell 2000 and S&P Mid Cap 400 outperforming.
Technology and communication services led sector gains, alongside financials and industrials, while volatility remained subdued as VXX drifted lower, signaling calm investor sentiment. Airlines and semiconductors showed notable strength, contributing to broad market advances.
Tomorrow’s calendar is light, with only weekly MBA mortgage and crude oil inventory data, leaving the market to test if momentum can hold without fresh catalysts.
Key Takeaway:
Focus on continuation setups in tech and communication sectors showing strong volume and momentum, while managing risk due to extreme caution in weekly breadth. Small- and mid-cap strength suggests looking for swing entries in these areas, but keep stops tight given potential inflation-driven volatility. Avoid chasing overstretched names without volume confirmation.
Watchlist
Continuation: KLAC (S1: 930, S2: 933, S3: 935, R1: 937, R2: 940, R3: 945)
Anticipation: AAPL (S1: 228, S2: 227, S3: 225.5, R1: 230, R2: 232.5, R3: 235)