Market Recap
U.S. equities closed at record highs into Friday (Oct 24) on broad earnings strength and a softer-than-feared inflation backdrop. The Dow pushed above 47,000, while the S&P 500 and Nasdaq also hit new highs. Leadership broadened, with Technology, Energy, and Industrials emerging as the top-performing SPDR sectors of the week. The VIX eased from the prior week’s volatility spike, and 10-year Treasury yields hovered near 4.0%.
Commodities & FX: Gold’s parabolic rally finally cooled with a sharp pullback after setting new highs earlier in the week. The U.S. Dollar Index edged higher, while oil prices firmed week-over-week.
The Wavy Tunnel PRO Market Map shows trend continuation in the Dow, S&P 500, and Nasdaq—but beware of Awesome Oscillator divergence as markets push to new highs.
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Macro Pulse
• Inflation: The latest reading showed ~3% year-over-year in September — marginally cooler than expected — giving risk appetite a boost.
• Rates: The FOMC meets Oct 28–29, with markets leaning toward another 25 bps rate cut, from 4.25% to 4.00%. Listen closely to the nuances in the press conference for clues about the policy path into year-end.
• Yields: The U.S. 10-year Treasury held near 4.02% into the weekend; the yield curve remains supportive for equities if the Fed maintains a dovish tone.
Sector Rotation Snapshot
Weekly leadership tilted toward Technology (+3.01%), Energy (+2.43%), Industrials (+2.10%), and Health Care (+1.93%), while defensive sectors like Utilities (-0.20%) and Staples (-0.80%) were mixed.
Key takeaway: Market breadth improved as strong earnings drove broader participation beyond mega-cap tech.
Wavy Tunnel PRO Market Map
We’re seeing a classic trend-continuation bias heading into earnings week — but also late-trend volatility in metals and selective PW/FG reversal candidates across extended leaders.
Actionable WTP reads for the week:
Below are the Top 10 S&P 500 gainers from last week and their current Wavy Tunnel PRO setups. Each offers a unique structure across timeframes — watch for pullbacks and Wave/Tunnel interactions to fine-tune entries.
| Ticker | Sector (SPDR) | Setup Type | Key Observation |
|---|---|---|---|
| ISRG | XLV | Weekly BO-4 blast-off | Look for Daily pullbacks to the Wave |
| GM | XLY | Weekly BO-3 bounce | Look for Daily pullbacks to the Wave |
| HAL | XLE | Weekly PW/FG trade | Watch for Daily Wave to cross above the Tunnel for continuation |
| LVS | XLY | Daily BO-4 blast-off | Look for pullbacks to the Wave |
| WBD | XLC | Weekly Wave crossing the Tunnel | Watch for Daily pullbacks to the Wave |
| F | XLY | Wait for Weekly Wave to cross above the Tunnel | Trend continuation setup |
| ALB | XLB | Weekly PW/FG corrective bounce | Monitor for Weekly Wave to cross above the Tunnel |
| AVY | XLB | Weekly & Daily PW/FG bounce | Similar corrective bias — wait for Wave to confirm above Tunnel |
| DOW | XLB | Weekly & Daily PW/FG bounce | Monitor for Wave confirmation above Tunnel |
| RTX | XLI | Weekly & Daily BO-3 bounce | Look for pullbacks to the Wave for continuation |
Watchlist Starters (Wavy Tunnel PRO analysis)
Mega-Cap Catalysts (Earnings This Week):
- AAPL – Daily and Weekly uptrends with price stretched; look for pullbacks into the Wave.
- AMZN – Daily BO-4 blast-off and Weekly BO-3 continuation.
- GOOGL – Weekly and Daily BO-3; wait for a pullback to the Weekly Filter.
- MSFT – Weekly and Daily BO-3; trend intact with minor pullback potential.
- META – Daily BO-4 blast-off and Weekly BO-3 continuation structure.
Wavy Tunnel PRO Daily BO-4 Dashboard Scan
• Weekly bullish trends confirm the Daily BO-4 setups.
• Symbols triggering this week: AMZN, BA, BX, BYD, CAKE, COF, CVNA, DIS, FAST, HAS, MA, NFLX, RCL, TSCO.
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Trading Game Plan
- Bias: Stay pro-trend into earnings week, but manage exposure with tighter stops as we approach the FOMC rate decision (Oct 28–29). Expect volatility spikes around press conference remarks.
- Setups: Focus on Daily BO-4 and BO-3 continuation trades in strong sectors — particularly Technology, Energy, and Industrials — while watching for PW/FG reversals in extended metals and gold miners.
- Execution:
• Use the Dashboard Scanner to confirm multi-timeframe alignment (Weekly → Daily).
• Enter on pullbacks to the Wave or Tunnel, using the Awesome Oscillator and Semaphores for timing confirmation.
• Take partial profits into momentum extensions, trail stops under the Daily Wave. - Risk: Keep position size modest ahead of high-impact events; the goal this week is precision, not aggression.
