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A recap of the November 3, 2020 session where the S&P rose 0.4% and the NASDAQ 0.8%, but the equal-weighted S&P fell 0.4% as breadth eroded. The hosts review scan signals, contrast the FN and Apple earnings reactions, and set a watch list and gap scenarios ahead of a heavy macro data day.
Key points
Index gains masked weak breadth: the 20-day breadth metric fell from 72% to 57% and 51.61% of stocks closed above their 40-day moving average.
Buying was a narrow rotation into AI hardware, while participation elsewhere decayed.
FN jumped 15.5% on a beat-and-raise quarter, while Apple fell 1.90% on a good-news sell fade tied to slowing services growth worries.
Tomorrow brings midterm elections, ADP employment, ISM non-manufacturing data and the AMD after-hours print.
Action codes are CRT and T3A: stay selective, keep position sizes small and wait for Thursday.
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