11/19 Cautiously Bearish. 225 Buying | 175 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bearish. 20% Weekly is Bearish.
The market shows further rotation out of mega-cap tech and AI names into value and healthcare sectors amid rising volatility and defensive positioning. Despite pockets of strength in small/mid-cap biotech and energy, broad indices closed below key moving averages for a second day, confirming cautious risk-off sentiment. The VXX spike and weakness in discretionary and tech sectors highlight elevated market uncertainty.
Energy (+0.6%) and healthcare (+0.5%) led sector gains, while consumer discretionary (−2.5%) and technology (−1.7%) lagged with notable selling pressure into the close. Volatility indexes (VXX) jumped, suggesting increased fear, while small/mid-cap biotech stocks like REGN, TARA, and SPRU showed late-day volume-driven momentum, offering potential short-term continuation setups.
Key catalysts include tomorrow’s NVIDIA earnings after the close and Wednesday’s FOMC minutes, which may further influence tech sector direction and Fed rate cut expectations.
Key Takeaway:
Traders should remain cautious, focusing on defensive sectors and selective momentum plays in small/mid-cap biotech showing strong late-day volume and close near highs. Avoid chasing breakouts in mega-cap tech and discretionary amid broad distribution and elevated volatility. Use tight stops and consider hedging with volatility products as the market digests mixed earnings and macro data ahead of key events.
Watchlist
Continuation:
REGN (S1: 720, S2: 719.5, S3: 718.5, R1: 728, R2: 730, R3: 735)
CACI (S1: 595, S2: 592, S3: 590, R1: 600, R2: 606, R3: 612)
Anticipation:
QURE (S1: 30, S2: 29.7, S3: 29.4, R1: 30.4, R2: 30.6, R3: 31)
CORD (S1: 50.5, S2: 50, S3: 49.2, R1: 51.4, R2: 52, R3: 52.8)