Next Day Prep

Next Day Prep #353: Big Index Rally Hides Weak Market Breadth – Wednesday 10/28/2026

Episode 3535:07

0:005:07

Episode summary

Stocks drifted near flat as the Fed held rates but signaled a possible December hike, while the AI trade regained momentum behind SK Hynix and Oracle. Breadth improved for a second day, keeping the regime Cautious with a bullish lean. All eyes turn to Alphabet and Microsoft earnings after the close.

Key points

  • The cautious regime held: breadth finished at 50.44% above the 40-day MA despite green indices (SPY 772.37, QQQ 725.35).
  • Under the surface breadth was weak: NYSE decliners beat advancers 1648 to 975 on 499.51 million volume, after the FOMC held rates at 3.75 to 4.00%.
  • LLY and AMGN worked as defensive capital flow as the 30-year yield hit 5.36%, while ENTG broke out of a Darvas box up 5.9%.
  • STLA gapped up 13.7% and needs orderly consolidation rather than being chased.
  • Bullish case: QQQ reclaims its 20-day SMA at 732.46. Bearish case: QQQ falls toward 701.16, and HOOD needs a cut under $90 using CRT.

Ticker charts

SPY

Open in app
SMAUp (filled)Down (hollow)

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.

Daily bars through Oct 28, 2026.

QQQ

Open in app
SMAUp (filled)Down (hollow)

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.

Daily bars through Oct 28, 2026.

LLY

Open in app
SMAUp (filled)Down (hollow)

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 LLY in WaveFinder.

Daily bars through Oct 28, 2026.

AMGN

Open in app
SMAUp (filled)Down (hollow)

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 AMGN in WaveFinder.

Daily bars through Oct 28, 2026.

ENTG

Open in app
SMAUp (filled)Down (hollow)

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 ENTG in WaveFinder.

Daily bars through Oct 28, 2026.

STLA

Open in app
SMAUp (filled)Down (hollow)

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 STLA in WaveFinder.

Daily bars through Oct 28, 2026.

SKHY

Open in app
SMAUp (filled)Down (hollow)

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 SKHY in WaveFinder.

Daily bars through Oct 28, 2026.

HOOD

Open in app
SMAUp (filled)Down (hollow)

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 HOOD in WaveFinder.

Daily bars through Oct 28, 2026.

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