11/3 Cautiously Bullish. 375 Buying | 165 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bullish – Caution.
The market closed a strong week led by mega-cap tech strength, notably Amazon’s record Q3 surge and solid earnings from Tesla and First Solar, supporting a tech-driven risk-on tone despite some choppiness in IT and communication sectors. Consumer discretionary (+4.1%) and energy (+0.6%) outperformed, while materials and utilities lagged. Volatility (VXX) remains stable, suggesting moderate caution.
Fed officials’ comments dampened rate-cut expectations for December, reinforcing a cautious stance on inflation and labor market resilience.
Key levels to watch include SPY support near 680 and resistance around 685-686, with QQQ support at 628 and resistance at 632. Semiconductor and software sectors show strong late-day accumulation, signaling potential continuation.
Key Takeaway:
Focus on tech and consumer discretionary sectors showing momentum and relative volume strength, especially mega-caps with strong earnings beats. Watch for pullbacks into support zones on leaders like TEAM, APP, and NVDA for potential entries. Avoid fading late-day weakness in materials and industrials until structure improves. Manage risk tightly given mixed breadth and cautious market tone ahead of important economic data early next week.
Watchlist
Continuation: TEAM (S1: 168.5, S2: 167.25, S3: 165.8, R1: 169.9, R2: 171.5, R3: 173.0)
Anticipation: NVDA (S1: 203.5, S2: 202.5, S3: 200.0, R1: 204.8, R2: 206.2, R3: 207.5)