Stock Market Outlook for November 3, 2026
“Positive seasonal tendencies for the equity market start at this time of year, but it is typically inappropriate to be aggressive in stocks while volatility is on the rise. “
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.
Stocks Entering Period of Seasonal Strength Today:
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Stock Highlight: |
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Amplify Mobile Payments ETF (AMEX:IPAY) Seasonal Chart |
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Cisco Systems, Inc. (NASD:CSCO) Seasonal Chart
BioMarin Pharmaceutical, Inc. (NASD:BMRN) Seasonal Chart
Owens Corning Inc. (NYSE:OC) Seasonal Chart
Disclaimer: Comments and opinions offered in this report are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered is believed to be accurate, but is not guaranteed.
The Markets
Further weakness in the Technology sector stood in the way of a rebound attempt in the broader market on Monday as investors eye the next pivotal event with the mid-term election. The S&P 500 Index declined by 0.51%, showing rejection from the downside gap that was opened on Friday between 7637 and 7700. Resistance at the lower limit of the previous multi-month trading range between 7620 and 7800 is becoming confirmed. The lower bound represents the neckline of a head-and-shoulders pattern on the hourly chart, a bearish setup that projects a theoretical downside target of 7400, or back to levels around the summer lows. The sloppiness of the tape in recent weeks and the concerns that the credit market were showing suggested that the market was vulnerable, despite being at a major turning point in the seasonal timeline from weakness to strength in stocks for the next six months. 20 and 50-day moving averages are no longer defining support and, for the first time since March, the benchmark is trading below its 100-day moving average. As noted in our recent chart books, there are segments following recent price action that we no longer want to be exposed to, but the market has provided rotation opportunities that allow us to maintain our overall equity exposure. Members can stay on top of our thinking and what we are watching in our regular reports, as well as view what we are targeting in our list of market segments to either Accumulate or Avoid
Want to know which areas of the market to buy or sell? Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market. Subscribers can login and click on the relevant links to access.
- Currencies
- Cryptocurrencies
- Commodities
- Major Benchmarks
- Sub-sectors / Industries
- ETFs: Bonds | Commodities | Equity Markets | Industries | Sectors
Today, in our Market Outlook to subscribers, we discuss the following:
- Our weekly chart books update, along with our list of all segments of the market to either Accumulate or Avoid
- Other Notes
- Additional Thoughts (Inverse correlation of stocks to a Democratic Mid-Term sweep, taking cues from the VIX to determine when to become risk-on again, expected upside exhaustion in commodity market playing out, Canada GDP, US Construction Spending)
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for November 3
Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.84.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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