EB Daily Market Report - Brief Update - Thursday, November 5, 2026

Well, there are several breakdowns on our major indices, sectors, and industries and a few things, in particular, are worth discussing.

First, semiconductors ($DJUSSC) are under intense pressure as selling in this area accelerates and the 50-week SMA is lost:

Semiconductors are the MOST influential industry group in the U.S. stock market. The extent of downward pressure on our major indices will depend significantly on which of the above support levels are able to hold.

Looking at the S&P 500, and key support levels on its chart, initial price support at 7500 has been lost today. It's worth noting that it's been lost on heavy volume as well, making it less likely that it'll simply just bounce right back. Check out this chart:

Today's volume is not shown on this chart as that won't update until end of day. However, you can pull up the same chart of the SPY, and ETF that tracks the S&P 500. Volume has exploded on the SPY and indicates confirmation of today's breakdown.

While many of my signals do not point to a major selloff (> 10%), I never ignore our primary indicator, which is the combination of price and volume. That signal is clearly BEARISH today. It doesn't mean that we're starting a bear market, but it does mean that today is different than recent selloffs. Not only is it occurring on heavy volume, but check out the massive surge in the Volatility Index ($VIX):

We've broken above 22, which had previously been resistance. As many of you know, the stock market's "sanity" is somewhat comprised any time the VIX pierces the 20 level. In other words, emotions can kick in as panicked selling takes the market down quickly. That's not a guarantee, it's simply letting you know that we're in VERY EMOTIONAL territory that can result in swift selloffs - just like we've seen today.

I'd like to see a capitulatory-type reversal and day at one of the key support levels provided on the S&P 500 to feel more confident about placing long trades. Personally, I take a lot of risk off the table when the market does what it's doing today, because I don't want to take the chance of being swept up in a few days of emtional trading and accelerating losses.

I'm not licensed to provide advice, nor is EarningsBeats.com. I can only tell you that, in my experience, selling like today's can morph into much more short-term selling.

As I write this, there's still over 30 minutes left in the trading day and prices can move fast. Perhaps we'll see a major buying episode into the close. Short of that, however, I'd look below to key support levels to see if those can help to slow the accelerated selling.

I'll be looking at much more information over the next few days to hopefully glean more directional clues. Right now, however, I feel it's best to take some precautionary measures - whatever that means to each individual.

Happy trading!

Tom