The markets moved into overdrive on Wednesday with the S&P 500 EW ETF hitting to new highs and some beaten-down groups surging. The Technology SPDR was not part of this group as it closed down a fraction. Gold Miners, Home Construction, Medical Devices and Solar Energy surged over 5%. Meanwhile, Oil, Oil & Gas Equipment & Services, Memory and AI Power Infrastructure fell over 5%. The bet here is for reduced tensions in the Middle East, a slower data center build-out, lower inflation, lower interest rates, and more focus on healthcare and clean energy. $XLE $USL $RSP $UST2Y $UST10Y $MAGS $SMH

The market is split. What else is new? Technology, Communication Services, Mag7 and the Nasdaq 100 stocks were leading the market into early October. This changed with outsized declines in mid October and the rotation out of these groups continued into November 2nd. Money did not leave the stock market as it rotated into small-caps, mid-caps and the other nine sectors. We do not have a bear market on our hands, but the rotations within the market are very pronounced. $SPY $QQQ $RSP $IJR $IJH $QQEW $SUPA50R $MIDA50R $SKYY $IGV $CIBR

Today’s report highlights bullish setups in the Russell 2000 ETF, Industrials SPDR and Amazon. All three are correcting within uptrends and should be watched for breakouts. Small-caps are showing relative strength since October, breadth is bullish for the industrials sector and Amazon recovered after its earnings-related gap. $IWM $XLI $AMZN

The Nasdaq 100 and the S&P 500 Equal-Weight define the rotations within the market in September and October. Currently, the S&P 500 EW ETF is leading, but this ETF is hitting a moment of truth (key retracement). AI and semiconductor ETFs bounced this week, but these look like oversold bounces after breakdowns. Elsewhere, money continues to move into healthcare with recent breakouts in the two biotech ETFs. $QQQ $RSP $XLF $AIQ $ARTY $SMH $SOXX $DRAM $IBB $XBI

Today’s report focuses on four ETFs that are setting up near Bullish Setup Zones. When correcting after a big advance or when forming a bullish continuation pattern, these are zones to watch for firming and a reversal. The firming means buying and selling pressure moved into equilibrium and this sets the stage for a potential reversal and breakout. This report shows the breakout levels to watch and re-evaluation level to consider should we see breakouts. $ITA $OIH $XES $MOO

Today’s report will focus on the broader market because the ingredients are in place for some choppy trading and a rally into yearend. Trading could be choppy because the Fed meets today and tomorrow, earnings season is in full swing and the US elections are next week. I am sure that there are a dozen other reasons (yields spreads, seasonal patterns, rates, oil etc…). $SPY $QQQ $XLK $IJH $IJR $SUPA50R $UST2Y $USL $SPXA200R

The Energy SPDR is the runaway year-to-date sector leader with the Technology SPDR at distant second. The energy sector sets the stage for the industry group ETFs within the sector. If the sector is bullish, then we want to look at industry groups and stocks within this sector for bullish setups. $XLE $XOP $CRAK $OIH $XES $AMLP $MLPX

Today’s report will focus on the two software ETFs and Adobe, a software stock that could be turning the corner. Software is in focus because this group is showing leadership since June. For example, the Software SPDR (XSW) is up 25% since June, while the Semiconductor SPDR (XSD) is down 24%. Semiconductors, however, are outperforming software when we go back to April and include the massive surge in April-May. Perhaps semis will come back, but right now software shows relative and absolute strength. $IGV $XSW $ADBE

Tech leadership is slipping as semiconductors break down and the AI trade unravels in October. XLK and QQQ remain well above their rising 200-day SMAs, which suggests they are still in long-term uptrends. However, both produced outsized declines in October and their September breakouts failed. Outsized declines are sudden and sharp declines that can derail an uptrend. $QQQ $QQEW $SPY $MAGS $XLK $AIQ $ARTY $SMH $DRAM $SOXX $SKYY $CIBR $IGV

SPY and QQQ are still in long-term uptrends, but the market is having a rethink here in October. After leading for most of 2026, the Technology SPDR and QQQ are lagging in October as they fell sharply the last six days. Moreover, both fell sharpy after hitting new highs and such declines can derail an uptrend. Elsewhere, the junk end of the stock market is bearing the brunt of selling pressure with the Russell 2000 and Russell Microcap ETFs leading the way lower. Breadth Thrust setups were brewing in early October, but the actual thrust signals failed to materialize. $IJR $IJR $IWM $IWC $XLK $QQQ $QQEW $SMH $SOXX $DRAM