Podcast
Next Day Prep #93: Rotational Boom Divergence Sparks Defensive Shift – Tuesday 8/19/2025
Key takeaways
- Key levels to watch tomorrow include support at $639 for S&P 500 and $569 for the Nasdaq, with resistance around $641 and $571 respectively. Stay cautious with mega-caps, focus on defensive sectors, and identify strong tactical setups within weak sectors.
- Remember, respect the current rotation and defensive flow until more clarity is provided post the Fed’s upcoming announcements.
Next Day Prep: Rotational Boom Divergence Sparks Defensive Shift
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Today’s market saw a pullback, with notable divergence between mega-caps and other sectors. While tech giants like NVIDIA and Amazon faced losses, defensive sectors like Real Estate and Utilities saw gains, indicating a rotation rather than panic.
Overnight Headlines
- Intel stood out with a nearly seven percent surge following a substantial investment from Softbank.
- Home Depot defied the trend, rising over three percent despite an earnings miss, setting a positive tone for the retail sector.
Economic Announcements
No major economic announcements.
Earnings Highlights
- Amer Sports reported positive earnings and raised guidance but faced a stock decline due to the CEO of their Wilson brand stepping down.
- Upcoming earnings reports from Lowe’s, Target, and TJX are anticipated with interest.
Top Movers
Watch for strength in healthcare stocks like HCA, while tech players like ASML and Qualcomm (Q-C-O-M) show potential setup for breakout moves.
Quick Trade Ideas
- HCA: Look for a breakout above $405 targeting $410.
- Home Depot: Potential move to $415 if holding above $406.
- ASML: Watch for a challenge to $750 with support at $742.
- Qualcomm (Q-C-O-M): Potential push to test $160 with a break above $157.