The final week of October marked a constructive shift in market sentiment as investors regained some confidence following a stretch of volatility earlier in the month. Equities finished higher overall, led by a rebound in cyclical and commodity-related sectors. Treasury yields eased slightly from recent highs, easing pressure on valuations and fueling a modest rotation into risk assets. Still, market breadth remained uneven, with many growth and technology names struggling to sustain momentum. Earnings reports continued to dominate headlines, producing mixed reactions as several mega-cap companies missed top-line expectations but offered stronger forward guidance.
The S&P 500 (SPY) closed the week with a gain of approximately +0.7%, managing to hold above key support levels that had been tested multiple times during October. While the index’s advance was relatively modest, it represented an encouraging sign that buyers were beginning to step back in after several weeks of defensive positioning. Energy, materials, and precious metals led performance, while consumer discretionary and communication services lagged. The technical picture for the S&P remains neutral, but improving momentum in several cyclical sectors suggests potential for a stronger November if yields remain contained and inflation data continue to cool.
Amid this backdrop, the Gold Miners ETF (GDX) emerged as the Top Pick of the Week, capturing a strong short-term breakout as gold prices rallied. GDX gained +4.01% for the week, surging from the Green Zone on rising volume and maintaining an SCTR rating above 90 — a clear signal of institutional accumulation. The move was a textbook Above the Green Line setup, demonstrating the power of technical strength and rules-based trading even when the broader market is consolidating. The quick two-day trade aligned perfectly with our short-term swing criteria and once again outperformed the overall market benchmark.
Looking ahead, traders will be watching the upcoming Federal Reserve meeting and the next round of inflation data for clues about the market’s direction into November. If yields stabilize and economic growth remains steady, the market could transition from consolidation to a more sustained rally. Until then, disciplined adherence to the Green Line rules — focusing on strong relative strength and volume confirmation — remains the most effective way to navigate the current environment.
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