AI Doubts Sink Tech, Dow Holds
Doubts about AI spending hit chips and the Nasdaq hard while the Dow finished flat, and the scan turned away from technology toward steadier names.
The Signal
The Nasdaq had its worst day since early June and the S&P 500 fell, while the Dow closed flat. Buying flows still outnumber selling flows, but structure is cautious, with lower highs far outnumbering higher highs. Bearish turns cluster in health care, bullish turns in financials.
The Noise
The story is that the AI trade is breaking. Meta slid on its first cash outflow in over a decade and chips extended their slide. The data says the selling was concentrated: blue chips held, and money moved rather than left.
Multi-Signal Confluence
DaVita (DVA): money began flowing back a day ago as price held above its prior low, after a policy-driven drop on dialysis reform. Steady fundamentals, around sixteen times earnings, but it reports October 29th and the larger trend is down. Watchlist until the print.
MGM Resorts (MGM): a bullish reversal candle at deeply oversold levels, with the model's fair value well above price. Selling pressure is still heavy and it reports October 28th.
Bunge (BG): money flowing back in despite a fresh low, with analysts almost uniformly positive. Earnings expected around October 29th.