11/7 Bearish. 250 Buying | 750 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bearish. 20% Weekly is Bearish – Extreme Caution.
The market struggled with growth and mega-cap tech stocks under pressure amid profit-taking and valuation concerns, dragging indices lower despite a few earnings beats. Defensive sectors like Energy and Health Care showed relative strength while Consumer Discretionary and Information Technology lagged. Volatility remains elevated with VXX spiking, reflecting market fear and risk aversion.
Sector rotation favors defensive growth areas such as healthcare tools and security software while high-beta sectors like solar and discretionary face selling pressure. Late-day momentum in select stocks like MTSI, NUVL, and EXPE suggests pockets of opportunity.
Upcoming catalysts include delayed October jobs data Friday morning and a busy earnings calendar with key tech, healthcare, and industrial names reporting through the week.
Key Takeaway:
Traders should exercise caution amid broad bearish momentum and elevated volatility. Focus on defensive sectors and high-quality growth names showing relative strength and volume support. Avoid chasing weak discretionary and solar names until clear reversal signs emerge. Use tight stops given the risk of further downside and watch for potential volatility spikes around economic data and earnings.
Watchlist
Continuation: MTSI (S1: 164, S2: 166.5, S3: 169, R1: 169, R2: 171.5, R3: 173)
Anticipation: IDXX (S1: 707, S2: 705, S3: 701.5, R1: 712.5, R2: 718, R3: 725)