10/15 Cautiously Bullish. 475 Buying | 170 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Neutral. 20% Weekly is Bullish – Caution.
The market showed strong buy-the-dip action that erased early losses despite geopolitical concerns around China-South Korea sanctions. Financials and consumer staples led gains, supported by solid Q3 bank earnings and upbeat guidance, while tech and mega-cap growth names lagged amid profit-taking. Fed officials reiterated expectations for a 25-basis-point rate cut this month, sustaining optimism for easing and bolstering smaller-cap stocks.
Sector rotation favored defensives like consumer staples and utilities, while industrials and materials also posted gains. Tech and consumer discretionary sectors faced selling pressure, with semiconductor stocks notably weak amid NVDA’s decline. Volatility (VXX) remains stable, indicating moderate market anxiety.
Tomorrow’s catalysts include the Empire State Manufacturing Index and Fed speeches, which could influence intraday swings and sector leadership.
Key Takeaway:
Focus on small- and mid-cap momentum names showing strong volume and late-day strength, especially in biotech, energy storage, and crypto miners. Avoid chasing large-cap tech and mega-cap names until 15:30 supply zones are cleared. Use dips near support levels for entries and maintain tight stops below key pivots to manage risk amid mixed breadth and neutral primary indicators. Defensive sectors offer relative stability if volatility picks up.
Watchlist
Continuation: NPWR (S1: 5.0, S2: 4.8, S3: 4.5, R1: 5.5, R2: 5.5, R3: 6.0)
Anticipation: CIFR (S1: 21.0, S2: 20.9, S3: 20.5, R1: 21.5, R2: 21.5, R3: 22.0)