5/7 Bearish. 250 Buying | 500 Selling.
T2108 is Bullish. Primary Indicator is Neutral. 20% Weekly is Bullish – Caution.
The market continues to face selling pressure amid renewed tariff concerns and cautious corporate guidance, with the S&P 500 and Nasdaq posting declines for a second day. The May FOMC decision tomorrow remains a key event as investors weigh inflation and growth risks.
Technology and healthcare sectors show pockets of resilience with momentum building in names like NVDA, MSFT, and ISRG, while broader market volatility edges higher as reflected in a rising VXX. Consumer discretionary also displays relative strength despite overall risk-off sentiment.
Upcoming catalyst: The Federal Reserve’s May policy announcement at 2:00 ET and March Consumer Credit data later in the day will be critical for market direction.
Key Takeaway:
Swing traders should remain cautious given the dominant bearish volume and tariff-related uncertainties. Focus on technology and healthcare stocks showing volume-backed momentum for potential continuation plays, but maintain tight stops as overall market breadth remains weak. Watch for volatility spikes around the FOMC event and avoid chasing breakouts without confirmation.
Watchlist
Continuation: NVDA (S1: 113, S2: 112.5, S3: 112, R1: 115, R2: 115.5, R3: 117)
Anticipation: NTCL (S1: 28, S2: 30, S3: 39.5, R1: 44, R2: 49, R3: 50)
