5/2 Cautiously Bullish. 300 Buying | 200 Selling.
T2108 is Bullish. Primary Indicator is Bearish – Caution. 20% Weekly is Neutral.
The market extended its winning streak to eight consecutive sessions, led by strong momentum from tech earnings, notably Microsoft and Meta, despite some sector rotation and mixed economic data signaling a softening labor market.
Technology (+2.2%), Communication Services (+1.6%), and Consumer Discretionary (+1.0%) led gains, while Health Care lagged due to disappointing Eli Lilly results; volatility (VXX) showed signs of rising investor caution.
Upcoming Catalyst: Friday’s April Nonfarm Payrolls and Factory Orders data will be key, with consensus expecting slower job growth and steady factory activity.
Key Takeaway:
Swing traders should focus on technology and communication sectors showing strong momentum and volume support, but remain cautious given the bearish primary indicator and rising volatility. Monitor key support around SPY 556-557 and QQQ 478-479 for potential pullbacks, while watching for breakouts in high-volume setups. Avoid overexposure to weak healthcare and watch for volatility spikes that could trigger short-term reversals.
Watchlist
Continuation: HUBS (S1: 619, S2: 612, S3: 625, R1: 631, R2: 635, R3: 645)
Anticipation: CHKP (S1: 210, S2: 205, S3: 213, R1: 220, R2: 225, R3: 230)
