6/5 Cautiously Bullish. 300 Buying | 120 Selling.
% Stocks Over 50SMA is Bullish – Caution. Primary Indicator is Bullish. 20% Weekly is Bullish.
The market churned amid weak economic data, with ADP and ISM Services PMI signaling slowing growth and stagflation concerns, yet mega-cap tech and semiconductors provided support.
Communication Services led sectors higher (+1.4%), while Energy and Utilities lagged; volatility (VXX) spiked briefly but settled, indicating cautious investor positioning.
Upcoming catalysts include Thursday’s Initial Jobless Claims, Trade Balance, and Fed Governor speeches, which could influence short-term direction.
Key Takeaway:
Swing traders should focus on names with strong sector momentum like semiconductors and communication services while respecting key support levels amid mixed breadth and cautious volume patterns. Avoid chasing weak sectors such as energy and utilities. Use tight stops near support to manage risk given the recent volatility and economic uncertainty.
Watchlist
Continuation: CRWD (S1: 459, S2: 455, S3: 450, R1: 465, R2: 470, R3: 475)
Anticipation: CVNA (S1: 343, S2: 340, S3: 338, R1: 346, R2: 350, R3: 354)
