Defensive sectors continue to outperform, with Healthcare (XLV) and Consumer Staples (XLP) gaining +9.8% and +10.9% over the past month, respectively, while Technology (XLK) has fallen -8.3%.Welcome back Reader!

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VIX

The week opened with VIX in a bullish TREND. It saw a few days of recovery (while XLP was signaling to get long), then closed the week still in bullish TREND. It continues to hold and is showing strong signs heading into the midterm election.

MOVE

Bond volatility is confirming the same message and bounced off the low end of the RANGE and TREND. When both equity and bond volatility are showing TRENDING volatility, paired with bearish credit and a bullish DXY, this is a significant Quad 4 recipe—even though the Quad 4 data itself is still months away. This is why you need the signal over the Quads.

HYG

Credit overran and held a bearish TRADE while TREND was never in doubt.

SPY

The overall equity signal is SPY. It broke TREND last Friday, then came back and tested that level this morning—signaling not to chase the green open, but rather giving another opportunity to sell or cut weakening signals.

QQQ

QQQ broke down the day before SPY and served as a key indicator to put on AI shorts, such as the DRAM position we covered in real time.

Sector Signals

DRAM

The AI bubble popped on October 13 and gave a clear short signal right at the top end of the RANGE in bearish TRADE TREND. It is now down over 10% from that fractal spot.

IGV

Software closed in a bearish TREND on Friday, telling you to get out as it goes for new cycle lows today.

QTUM

QTUM has been following AI and delivered a picture-perfect bear-market bounce, giving a great opportunity to hedge before the move happened.

XLF

XLF was one of the sectors last week signaling a bullish flip. Despite the overall bearish signal, some sectors have been outperforming when concentrated in the right signals to the long side.

XLP

Staples are another long exposure that stayed green on a day like today. They are now at the top end of the RANGE alongside XLF. With overall conditions remaining bearish, this is an especially good time to take some profits in those.

XLE

XLE had some room to the downside going into the end of last week. Today it is at the low end of the RANGE—an opportunity to grab more exposure if you need longs in the book.

Thursday, Oct 29th, 2026

XLV

XLV has been a portfolio heavy lifter, especially during this downturn. These are the things that happen in bullish TRADE TRENDs, and the signal showed you exactly where to keep longs on.

IAK

Insurance stocks are thriving in this market and gave a buy signal at the low end of the RANGE in bullish TRADE TREND. In markets like these, it is critical to see the full fractal math—there are still plenty of things working.

Macro Markets

DXY

After selling some FX and other DXY-correlated exposures, it is back at the low end of the RANGE and ready to reload for another dollar run.

Euro

Euro, the FX of choice, is already working out nicely. To execute in real time, though, it is hard to rely on someone else—you need to see the fractal math in real time.

EPHE

Philippines did not quite make it to the top end of the RANGE, but China is helping to broaden Global Equity shorts.

FXI

China is in bearish TRADE TREND at the top end of the RANGE today.

TLT

TLT gave the exit signal and is holding, but has yet to give a buying opportunity to ride the other direction. Rates have been at the center of macro tourism for months—how did you do in bonds the last few months? The signal has absolutely nailed this market.

Oil

Huge down day in Oil today, but it ran right to the low end of the RANGE in bullish TRADE TREND, making XLE a decent play on the day.

GLD

Huge down day in Oil today, but it ran right to the low end of the RANGE in bullish TRADE TREND, making XLE a decent play on the day.

BTC

The plan was always: if BTC broke TRADE, add at TREND. It is still not quite there, but we could see some volatility going into the election, so orders are still sitting right above TREND. The core position is still lower here, starting in the mid-60s. If new longs get filled, it could be a quick turn and exit if TREND breaks. With TREND below the low end of the RANGE and this being the first break of TRADE, it looks like a good opportunity to add.

Still curious to see how the signal ends the week as election predictions are all over the place and more earrnings happening, once the market has clarity will be interesting to see what the machine looks like, but as always it's important to follow the fractal math as it comes in.

Subscribe to Similar Set Signal and stop reacting after the damage is done. Get the real-time fractal math that flagged these moves before they became obvious—so you can cut risk, add to what is working, and stay ahead of Quad 4 instead of chasing it. Turn every session into a planned, high-conviction decision. Join SSS today and trade with the signal, not the surprise.

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