11/14 Very Bearish. 150 Buying | 925 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bearish. 20% Weekly is Neutral.
Broad-based market retreat continues as rate-cut odds diminish further amid hawkish Fed commentary, with mega-cap tech and growth stocks leading losses. The S&P 500, Nasdaq, and Dow all closed sharply lower, accompanied by a spike in volatility (VIX +18% to 20.66), signaling increased investor caution ahead of key economic data and the December FOMC meeting.
Energy was the lone sector in positive territory, while consumer discretionary and technology sectors suffered the largest declines. Financials showed late-day distribution, notably in exchanges and data vendors, while insurance and select healthcare services demonstrated relative strength. Semiconductor weakness persisted but with some modest risk-on in certain proxies.
Upcoming catalysts include Friday’s October PPI and Retail Sales reports, which will be critical for gauging inflation and consumer demand, potentially influencing Fed policy expectations.
Key Takeaway:
Swing traders should exercise caution amid broad market weakness and elevated volatility. Focus on defensive sectors like energy and healthcare services showing relative strength, and consider selective long entries in insurance brokers and industrials on confirmed support holds. Avoid chasing breakouts in mega-cap tech and exchanges until volume confirms a reversal. Tighten stops given the bearish momentum and watch for reaction to Friday’s inflation data to gauge next directional bias.
Watchlist
Continuation: WTW (S1: 322, S2: 321.5, S3: 320.5, R1: 324.5, R2: 327, R3: 330)
Continuation: APD (S1: 262.5, S2: 262, S3: 260.5, R1: 263.5, R2: 265, R3: 267)
Anticipation: SPOT (S1: 642, S2: 641, S3: 637.5, R1: 647, R2: 650, R3: 655)
Anticipation: APGE (S1: 62.8, S2: 62, S3: 61.5, R1: 63.5, R2: 64, R3: 65)