Tech Sell-Off, Two Top Names
A tech-led sell-off ended the broad market's worst week since June, while two names outside technology, a bank and an oilfield services company, reached the top tier.
The Signal
Technology fell hard, the Nasdaq lost about two and a half percent, the broad market about one percent, and blue chips barely moved. Money flow is close to even. Early bullish turns sit in financials, industrials and energy, early bearish turns in technology and health care.
The Noise
Doubts about how long the AI spending boom can last, rising global bond yields, hotter inflation data and high oil all landed together. Energy rose while tech fell, so this was money leaving a crowded trade rather than leaving the market.
Multi-Signal Confluence
PNC Financial (PNC): price made a higher low while selling faded, the stock is deeply oversold and trades near eleven and a half times earnings. The Fed meets October 28, so the turn needs confirming.
Baker Hughes (BKR): a higher low with flow improving, but it reports October 27 and the model's fair value sits below the price. Size down or wait.
ServiceNow (NOW), the bearish counterpart: price pressed higher while the money behind it faded. Do not chase strength.