Morning Dose #370: Massive AI Costs Trigger Tech Selloff – Thursday 10/29/2026

Key points

• The market regime is cautious, with 46.82% of stocks above their 40-day simple moving average.
• Alphabet fell 10.79% to $287.15 after a 90 cent EPS miss and negative free cash flow of $9.06 billion, while Microsoft rose 1.60% to $539.50.
• Market breadth is firming: the 20-day SMA breadth gauge rose 14 points to 51% as capital moves into medical and quality large caps.
• Scanner shows two LYN continuation signals in Eli Lilly, Vertex Pharmaceuticals and IBM; use CRT (controlled risk taking) with tight stops and T3A (think three days ahead).
• Wait for the 8:30 AM ET Q3 GDP and September PCE data before committing capital, with an 83.3% probability of a December Fed hike.