8/20 Bearish. 125 Buying | 525 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bearish.
The market retreated on heavy mega-cap and tech weakness, with the Nasdaq down 1.5% and S&P 500 down 0.6%, despite gains in defensive sectors and a flat Dow.
Technology and communication services led losses, pressured by large-cap names like NVDA, AVGO, META, and GOOG, while real estate, utilities, and consumer staples showed relative strength. Volatility remained subdued as VXX declined, supporting a cautious environment ahead of Fed Chair Powell’s speech at Jackson Hole.
Tomorrow’s focus is on key earnings from HD, LOW, TGT, and TJX, alongside July FOMC minutes and Treasury auctions that could influence market direction.
Key Takeaway:
Swing traders should remain cautious given the bearish breadth and mega-cap pressure despite some defensive sector strength. Focus on names showing relative strength and volume spikes, particularly in healthcare and consumer staples, while avoiding tech and communication sectors until clear momentum returns. Use tight stops as volatility could increase around upcoming Fed commentary and earnings.
Watchlist
Continuation: HCA (S1: 400, S2: 395, S3: 390, R1: 405, R2: 410, R3: 415)
Anticipation: ASML (S1: 742, S2: 740, S3: 738, R1: 747, R2: 750, R3: 755)