6/12 Cautiously Bullish. 250 Buying | 240 Selling.
% Stocks Over 50SMA is Bullish – Caution. Primary Indicator is Bullish. 20% Weekly is Neutral.
The market showed early strength after a cooler-than-expected May CPI report but retreated into midday profit taking, leaving indexes slightly down. Energy led gains amid Middle East tensions and a sharp crude oil rally, while consumer discretionary and materials sectors lagged due to tariff concerns. Technology maintained relative strength but also gave back early gains. Treasury yields fell on the CPI data, supporting risk assets.
Technology and healthcare sectors exhibit strong momentum with leadership from MSFT, CRWD, and ONC, while financials and energy show mixed signals amid tariff uncertainties. Volatility remains subdued, consistent with a cautious but constructive environment for equities.
Tomorrow’s key catalysts include May PPI, Core PPI, and weekly jobless claims at 8:30 ET, which could influence near-term market direction.
Key Takeaway:
Swing traders should focus on tech and healthcare names showing volume-backed momentum, watching key support levels for entries. Avoid discretionary and materials sectors until tariff-related uncertainty clears. Use stops below noted supports to manage risk amid profit-taking pressure and moderate selling volume. Monitor PPI data closely for signs of inflation momentum that could shift sentiment.
Watchlist
Continuation: MSFT (S1: 472, S2: 471, S3: 468.5, R1: 475.5, R2: 476.5, R3: 478)
Anticipation: GOOGL (S1: 178.5, S2: 178, S3: 177, R1: 179.5, R2: 180, R3: 181)
