11/4 Bearish. 200 Buying | 480 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bearish.
Mixed start to November as mega-cap tech leads amid broader market softness, with Amazon and NVIDIA driving gains in consumer discretionary and technology sectors. Energy offshore drillers and quality financials showed late-session accumulation, while healthcare and semiconductor segments were mixed. Volatility remains subdued as VXX trends lower, signaling complacency despite cautious price action.
Consumer discretionary (+1.7%) and information technology (+0.4%) were the only sectors in positive territory, supported by strong Tesla and Amazon moves. Materials and consumer staples lagged, with Kimberly-Clark sharply lower after announcing a large acquisition. Offshore energy services (RIG, BORR) closed strong, contrasting with soft onshore drillers.
Fed officials remain uncertain on policy path; markets price a 65% chance of a December rate cut. Economic data showed continued manufacturing contraction, adding caution to the macro outlook. Palantir earnings after the close may add AI trade momentum.
Key Takeaway:
Swing traders should focus on selective strength in mega-cap tech and offshore energy services while avoiding broad market weakness and lagging sectors like materials and staples. Watch for clean breakouts in RIG (>4.00) and BORR (>3.30) with volume confirmation. Maintain tight stops below key intraday supports due to bearish breadth and low market volatility. Earnings catalysts in AI names may offer short-term momentum plays, but overall market tone remains cautious bearish.
Watchlist
Continuation: RIG (S1: 3.95, S2: 3.90, S3: 3.88, R1: 4.00, R2: 4.05, R3: 4.10)
Anticipation: POWL (S1: 389.5, S2: 388.5, S3: 386.5, R1: 392.0, R2: 395.0, R3: 400.0)