5/13 Cautiously Bullish. 1470 Buying | 230 Selling.
T2108 is Bullish. Primary Indicator is Bullish. 20% Weekly is Bullish – Extreme Caution.
Stocks surged sharply as US and China agreed to significant tariff reductions for 90 days, fueling a broad risk-on rally led by mega caps and tech. The S&P 500 jumped 3.3%, Nasdaq gained 4.4%, while volatility (VXX) dropped 16%. Treasury yields rose modestly, and the US Dollar strengthened, pressuring gold.
Technology and Consumer Discretionary sectors led with strong volume and momentum, while Utilities lagged. Semiconductor names like ASML and ADI showed continuation breakout patterns, supported by relative volume and strong intraday support. Energy remains volatile amid geopolitical uncertainty.
Tuesday’s key catalysts include April CPI and Core CPI data, along with the NFIB Small Business Optimism Index, which could influence near-term market direction and volatility.
Key Takeaway:
Swing traders should focus on tech and semiconductor names showing momentum breakouts with solid volume support, using tight stops near established support levels. Caution is warranted given the 20% Weekly indicator’s extreme caution signal and upcoming CPI data. Avoid chasing extended rallies in defensive sectors and monitor Treasury yields and dollar strength for potential rotation signals.
Watchlist
Continuation: ASML (S1: 744, S2: 746, S3: 749, R1: 750.5, R2: 753, R3: 757)
Continuation: ADI (S1: 222, S2: 223, S3: 223.5, R1: 224, R2: 224, R3: 225)
Anticipation: IDXX (S1: 507, S2: 506, S3: 504.5, R1: 509.5, R2: 511, R3: 512.5)
Anticipation: WDAY (S1: 265, S2: 264.5, S3: 263.5, R1: 266, R2: 267, R3: 268)
