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A rotation day on October 29: breadth exploded higher with 40SMA at 58.2% and small caps leading as IWM gained 1.20%, while the Nasdaq-100 broke below key moving averages down 1.35%. FCN stole the show with a 10.3% continuation move, and medical names ICLR and LH flashed institutional volume confirmation.
Key points
QQQ fell 1.35% to 715.78 and broke below its SMA-20 and SMA-50, while IWM rose 1.20% to 284.67 and SPY slipped 0.36%.
Breadth favors bulls: 264 bull 4% signals versus 124 bear 4% signals, and 58.2% of stocks are above their 40-day moving average.
FCN, ICLR and LH are moving on high volume, while HEEI and GDE are advancing on light volume and are vulnerable to reversal.
The afternoon call is controlled risk taking (CRT): tighter stops and selective sizing.
The rotation holds if QQQ reclaims 725.42 and IWM closes above its 20-day high of 285.26.
See QQQ in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open QQQ in WaveFinder.
See IWM in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open IWM in WaveFinder.
See SPY in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open SPY in WaveFinder.
See FCN in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open FCN in WaveFinder.
See ICLR in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open ICLR in WaveFinder.
See LH in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open LH in WaveFinder.