Broad Market Outlook
The markets took a temporary pause last week, the S&P continues to battle with the 4,600 level that has been resistance since 2022.
After an 800 point run up in the index this year, a pause here isn't much to lose sleep over.We saw the same going on in the Dow Jones last week as well as it ran into its major resistance area at 35k.
The only major market to clear and hold above its major resistance area has been the Nasdaq which may be forshadowing that with some time, the S&P and DOW names will follow suit.
Sector wise, things are getting interesting as the rotation month to month continues to shock and surprise. Industrials have turned the prior all time high area into new support, a great sign to see.
Tech continues to inch towards being the 2nd sector to put in new highs but it currently losing some momentum as it nears this finish line.
The Energy names seem to be the quiet sector that has started to break out of the major wedge pattern it has formed as it starts to push out of that pattern and climb back towards highs.
The Telecom sector which has been the worst performing sector since the start of the Bear Market in 2022 finally has caught a bid as it continues to trend higher week after week.
The Cyclical sectors that are often more sensitive to overall market conditions have been a bit weaker compared to the rest of the major sectors. The Consumer Discretionary did a great job retesting the prior pivot high however has since formed lower pivot highs as it starts to slowly roll over back under that breakout level.
Financial names have gone on an impressive run this summer reclaiming the drops from the saga in March but they too seem to be losing some steam as they run into there major level of resistance.
The REITs rounding off the cyclical sectors has barely been in this summer rally as it continues to bounce around in the base that has been forming for a year now.
As we get into the last month of summer trading, this tends to be the slowest time of the year.
We had a great 2 months of summer trading, as the markets may start to cool a bit as most of the big money will be soaking up the last bit of summer sun.
This is not the time to over trade and give back the early summer gains.
From Bennett
Trading Experts
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Macro Rotation Outlook
SPY
Dow Jones
Nasdaq
Mid Caps
Small Caps
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Sector Rotation
Sensitive - sectors that have moderate correlations to overall market conditions.
Tech
Energy
Industrial
Telecom
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Cyclical - sectors that are more sensitive overall market conditions.
Materials
Consumer Discretionary
Financials
REIT
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Defensive - sectors that tend to outperforming during sub par market conditions.
Consumer Staples
Healthcare
Bio Tech
Utilities
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Big Picture Set Up's
MLM
With MLM failing this 463 area on the day it reported, it is setting up this Blue Sky Breakout for an even better move when it is finally able to get back up towards that level again. One to keep on the radar for now.
NKE
Took a feeler position in NKE this week vs 107 area, will be looking to add up through 110 again this week if it gets up there.
OMC
OMC gapped down on earnings and has since started to find support down here in the $82 to $84 area. Looking for a support buy back entry up through $84. If this area fails, those who short could look to short the $82 break down.
PDCO
Ricky called this pattern out last week on the Pre Market Call. Could not ask for a more text book breakout pattern to form in the name.
TDG
This seller at 900 in TDG is still showing his hand for now but when that seller is gone, we should see a nice breakout higher in the short term.
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