5/26 Cautious. 200 Buying | 165 Selling.
T2108 is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Neutral.
The market closed lower amid tariff concerns and trade uncertainty, triggering risk-off sentiment and a spike in volatility despite some late-day stabilization. Mega-cap tech and consumer discretionary sectors led the decline while utilities bucked the trend with gains.
Defensive sectors like Utilities (+1.2%) outperformed, while Technology (‐1.3%), Communication Services (‐1.0%), and Consumer Discretionary (‐0.9%) faced selling pressure; VXX volatility spiked intraday before easing.
No market activity Monday due to Memorial Day holiday. Key catalysts next week include Durable Goods Orders, Consumer Confidence, and FOMC Minutes.
Key Takeaway:
Swing traders should remain cautious given bearish breadth and tariff-related headline risk. Focus on defensive sectors for potential stability while watching for confirmed breakouts in technology stocks showing volume accumulation. Avoid chasing momentum in pressured discretionary names until tariff clarity improves. Tight stops are advised amid elevated volatility.
Watchlist
Continuation: NVDA (S1: 130.5, S2: 130.5, S3: 131, R1: 131.5, R2: 132, R3: 132.5)
Anticipation: CYBR (S1: 379, S2: 376, S3: 373, R1: 383, R2: 386, R3: 389)
