10/31 Bearish. 210 Buying | 410 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bullish.
The market’s record-high rally paused as mega-cap tech and consumer discretionary stocks pulled back sharply, with Meta’s heavy post-earnings tax charge and elevated AI spending weighing on sentiment. Rotation out of tech into financials and select defensive sectors is evident amid cautious risk appetite.
Communication services and consumer discretionary sectors led declines, while real estate, financials, and health care showed modest gains. Volatility remains subdued with VXX drifting lower, supporting a cautious risk-on tone despite the pullback.
Investors await Friday’s key economic data including Employment Cost Index, Personal Income, and Chicago PMI for further direction amid mixed earnings and Fed commentary.
Key Takeaway:
Swing traders should exercise caution given broad distribution in mega-cap tech and financials. Focus on names showing relative strength and tight bases (e.g., SNOW, HUBS) for potential continuation plays. Avoid chasing breakouts in pressured sectors and use well-defined support levels for entries, maintaining tight stops to manage risk in this cautious environment.
Watchlist
Continuation: SNOW (S1: 271, S2: 270, S3: 269.5, R1: 275, R2: 277, R3: 280)
Anticipation: UEC (S1: 15.5, S2: 15.0, S3: 14.5, R1: 15.5, R2: 15.8, R3: 16.0)