Friday was another day dominated by sellers.
Uncertainty surrounding the Isreal-Hamas conflict and rising bond rates remain the stand-out reasons.
The indexes all posted a second day of significant losses…
- Dow Jones -0.9%
- Nasdaq -1.5%
- S&P 500 –1.3%
- Russell 2000 -1.3%
Sector Round Up
All of the 11 sectors ended Friday’s session lower—a repeat from Thursday.
Falling the least…
- Consumer Staples (XLP) -0.4%
- Healthcare (XLV) -0.4%
- Real Estate (XLRE) -0.5%
At the bottom…
- Consumer Discretionary (XLY) -1.6%
- Energy (XLE) -1.7%
- Technology (XLK) -1.7%
The Russell 2000 fell to 52-week lows over the past two trading sessions. But oversold conditions are lurking around the corner…
There is still some seasonal weakness to get through. Historically, October sell-offs are the best time to buy.
A retest of these levels in November will force us to reevaluate.
For now, we remain buyers.
Your latest readout…
- The VIX is now holding above 20
- RSI levels are all barely clinging to neutral
- The put-to-call ratio remains oversold
This week, earnings season shifts into high gear.
Here are the hottest names we’ll be watching…
- Microsoft (MSFT) Tuesday PM
- Alphabet (GOOG, GOOGL) Tuesday PM
- Meta (META) Wednesday PM
- Amazon (AMZN) Thursday PM