10/17 Bearish. 175 Buying | 640 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bullish – Caution.
Credit quality concerns in regional banks and geopolitical uncertainty drove a volatile risk-off session with broad sector losses and a surge in volatility. Tech held marginally positive on strong TSM AI demand, while energy and small/mid caps lagged amid weaker crude prices and trade war rhetoric. The VIX spiked over 20%, reflecting elevated fear despite a late dip in volatility.
Financials suffered notably after fraud disclosures and charge-offs at Zions Bancorp and Western Alliance weighed heavily, dragging the KBW Regional Bank ETF down 6.3%. Defensive sectors like precious metals showed late-day accumulation, signaling some safe-haven rotation.
Fed and economic data remain in focus this week, including September Housing Starts and Industrial Production on Friday, with ongoing geopolitical developments adding risk.
Key Takeaway:
Traders should exercise caution given the bearish breadth and heavy selling volume, focusing on quality tech leaders and defensive setups like GLD and select life sciences tools showing late-session accumulation. Avoid chasing weak financials and volatile small caps amid credit concerns. Use tight stops and confirm strength early in the session before scaling in.
Watchlist
Continuation: WAT (S1: 333, S2: 332.5, S3: 331.5, R1: 335.5, R2: 337, R3: 338.5)
Anticipation: JBL (S1: 209.5, S2: 208.5, S3: 207.5, R1: 210.5, R2: 212, R3: 214)