12/17 Bearish. 170 Buying | 250 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bearish.
The market showed broad weakness with the S&P 500 and Dow Jones closing lower, while the Nasdaq managed a late rebound led by tech mega-caps. Energy and health care sectors underperformed notably, pressured by falling oil prices and disappointing Pfizer guidance. Defensive sectors like health care and utilities saw rotation as volatility remained subdued. Employment data surprised to the upside but did not shift Fed easing expectations.
Tech and mega-cap stocks provided late-session support, highlighting ongoing rotation and an uncertain market direction ahead of Wednesday’s housing starts and building permits data. Energy weakness on crude’s decline and health care selling after ACA subsidy news weighed on broader indices.
Key upcoming catalysts include Wednesday’s housing data and ongoing earnings reports from major names like ABM and GIS.
Key Takeaway:
Traders should remain cautious amid bearish breadth and mixed signals from momentum indicators. Focus on tech and select industrials showing late strength for potential short-term continuation plays. Avoid energy and health care sectors facing fundamental headwinds. Use tight stops given the current volatility and watch for follow-through in Nasdaq leaders while managing risk around key support levels.
Watchlist
Continuation: MDB (S1: 420, S2: 419.5, S3: 416.5, R1: 423, R2: 425, R3: 428)
Anticipation: UNH (S1: 333, S2: 332.5, S3: 331, R1: 335, R2: 337, R3: 340)