10/23 Bearish. 150 Buying | 630 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bearish.
The market remains under pressure amid earnings misses from major tech and industrial names, geopolitical tensions, and rotation into defensive sectors. The S&P 500 and Nasdaq closed lower with small and mid-caps underperforming, while energy and staples showed relative strength. Volatility remains subdued with VXX stable, indicating no immediate panic despite the bearish tone.
Energy (+1.3%) led sector gains on rising crude oil prices; industrials (-1.3%) and communication services (-0.9%) lagged sharply after earnings disappointments from GE Vernova and Netflix. Healthcare and consumer staples posted modest gains, supported by strong earnings in select names like Intuitive Surgical.
Watch for Thursday’s Existing Home Sales and natural gas inventory data for further market direction amid ongoing geopolitical risks and upcoming earnings from Tesla and others.
Key Takeaway:
Traders should remain cautious and favor defensive sectors and high-quality names amid broad selling pressure. Look for swing entries in industrials and niche tech showing late-session accumulation, but avoid chasing weak consumer discretionary and financials. Confirm momentum continuation on pullbacks near key support levels before scaling in.
Watchlist
Continuation: RTX (S1: 177.5, S2: 176.5, S3: 176.0, R1: 178.5, R2: 179.5, R3: 181)
Anticipation: CRWD (S1: 499, S2: 496, S3: 492, R1: 501, R2: 503, R3: 507)