9/10 Cautiously Bullish. 400 Buying | 150 Selling.
% Stocks Over 50SMA is Bullish. Primary Indicator is Bullish. 20% Weekly is Bullish.
The market showed broad-based gains with Nasdaq hitting a record high ahead of key inflation data, supported by strong sector rotation into communication services and mega-cap tech.
Technology and communication services led with notable strength, while materials, industrials, and real estate lagged; volatility remains subdued as VXX declined slightly.
Focus turns to Wednesday’s August PPI release and Friday’s CPI data, which could influence the pace of expected Fed rate cuts.
Key Takeaway:
Swing traders should focus on technology and communication services for continuation plays, watching key support and resistance levels on leaders like GOOG and META. Avoid materials and industrial sectors showing weakness. Maintain stops near support and be ready for volatility spikes around inflation data. Volume-backed breakouts in mega-cap tech offer actionable setups.
Watchlist
Continuation: ASML (S1: 800, S2: 802.5, S3: 805, R1: 806.5, R2: 810, R3: 815)
Anticipation: GOOG (S1: 238, S2: 238.5, S3: 239, R1: 240.5, R2: 241, R3: 242)