9/24 Cautiously Bullish. 230 Buying | 190 Selling.
% Stocks Over 50SMA is Bearish – Overbought. Primary Indicator is Bullish. 20% Weekly is Neutral.
Mega-cap weakness weighed on the market after record intraday highs, with S&P 500 and Nasdaq retreating amid valuation concerns and profit-taking in key tech names like NVDA and ORCL. Energy was the lone major sector gaining ground, supported by a nearly 2% rise in crude oil prices. Defensive sectors showed relative stability while small and mid-caps outperformed large caps slightly. Volatility (VXX) remains subdued, signaling moderate investor caution but no panic.
Defense and industrial sectors showed strong late-day momentum, led by KTOS, LHX, and GE, while semiconductors (MU) are positioned for event-driven upside after hours. Consumer discretionary and tech growth names lagged, reflecting ongoing profit-taking pressures. Watch for steady volume and price action to confirm continuation or reversal setups.
Economic catalysts include MBA Mortgage Applications, August New Home Sales, and a $70B 5-year note auction Wednesday. Fed speeches continue with San Francisco Fed President Daly later in the day.
Key Takeaway:
Traders should focus on quality continuation setups in defense, industrials, and semiconductors while remaining cautious on mega-cap tech and consumer discretionary amid profit-taking. Use tight stops on momentum entries and watch for volume confirmation near support zones. Avoid chasing weak growth names without clear volume support and be prepared for moderate volatility around economic data and Treasury auctions.
Watchlist
Continuation: KTOS (S1: 83, S2: 82.5, S3: 82.5, R1: 84, R2: 84.5, R3: 85.5)
Anticipation: APLD (S1: 24, S2: 23.5, S3: 23, R1: 24.5, R2: 25, R3: 26)