Weekly Update
The Fear & Greed Index (found on cnn.com) is one of the easiest indicators to use to determine current market emotion. This simple to read gauge, highlighted in our publication When to Buy and When to Sell: Combining Easy Indicators, Charts, and Financial Astrology (available on Amazon), is measured in a range from 0-100, and currently reads 22 as of the close on Friday, November 6, 2026, after dipping to 19 on Thursday.
The gauge dropped back into the Extreme Fear category this week, after Thursday’s massive market decline, finishing down 4 points from last week’s close of 26. This was reflected in the S&P 500, which declined 204 points, from 7,580 to 7,376, after a moderate bounce back on Friday. Remember, this level of fear often suggests a rally in the near future, which started and stalled again this week after the perception of less AI funding after the Democrat victory in the U.S. Mid-Term elections.
The 7 internal factors used to formulate this gauge are listed on the screen (below):
Market Momentum – (S&P 500 vs its 125-day moving avg) = EXTREME FEAR
Stock Price Strength (# of new 52-week highs vs new 52-week lows) = FEAR
Stock Price Breadth (# of shares rising vs falling on NYSE) = NEUTRAL
Market Volatility (measured by the VIX) = EXTREME FEAR
Put to Call Ratio 5-day avg. (# of Puts (bearish) vs Calls (bullish) = EXTREME FEAR
Safe-Haven Demand (which measures stocks vs bonds) = EXTREME FEAR
Junk Bond Demand (non-govt. bond yield spread) = FEAR
This week, 3 of these 7 factors changed levels, as both the VIX and the Put to Call Ratio moved into the Extreme Fear level. The volatility was expected with the Mid-Term elections, though markets historically settle down soon after. Stock Price Breadth did improve, however, as the technology sector was hit the hardest and funds rotated into several others.
Overall market internals Moving Averages’ (MAs) sentiment had been quietly showing some improvement, with a broader scope of stocks gaining vs losing, as was evident by the Equal- Weighted SPY’s (RSP) steady uptrend. Thursday’s plunge this week skewed the numbers for the time being, as the longer-term 200-days remain bearish, and dipped to 43%, vs last week’s close of 45%, with the DJIA still leading at 63%, (unchanged from last week). The shorter-term MAs now read 42% on the 50-day (vs 41% last week), and 47% on the 20-day (vs 52% last week), even after Friday’s slight bounce. Both the Nasdaq 100 and the interest rate sensitive Russell 2000 small-cap are below the 50% mark, dragging the overall market sentiment to bearish. Sector strength remained fragmented this week, as only defensive sectors Healthcare and Consumer Staples survived the carnage. After the election results, recent leaders Energy, Utilities, and Financials suddenly plunged.
The “Risk-On” sentiment vanished, at least for a day, on Thursday, as money rotated from high-flying technology stocks to safer havens. 10-yr bond yields did decline slightly once again, ending the week lower by 0.7 points, at 4.86% vs last week’s close of 4.93%, the lowest reading in over 2 months.
The VIX (market volatility), spiked this week, finishing at 25.4 (after reaching 28 on Thursday) vs last week’s close of 19.4. As we often note, any break-through of the crucial “20” mark suggests a pullback, which was the case this week. As long as this gauge remains elevated, the volatility and high risk will continue.
Economic reports this week focused on major company earnings and employment reports, which were mainly positive, though the main event was the Democrats sweeping the Mid-term elections. Markets immediately surged based on the perceived end of uncertainty, more than any expectations of change, then violently reversed (especially in the technology sector) with fears of stricter AI regulations and less funding. As we have recently explained in several blogs, the months following these elections have historically been very positive, so patience is a virtue.
Astrologically, we continue through Scorpio season (Oct 23 – Nov 21), signifying sharper, Mars led aggressive energies, signifying stronger rallies, or drops, in equity price action, which was the case yet again this week. Major uncertainty, and nervousness, has persisted in the market, though that should eventually settle down now that the elections are over. Please review our Sign Language – Scorpio blog, dated 10-8-26, and our Did You Know – About the Mid-Term Elections blog, dated 9-23-26, for more details.
As discussed in recent weeks, current shorter-term transits/aspects of note include the ongoing Venus Retrograde (Oct 3 – Nov 14), and the Mercury Retrograde (Oct 24 – Nov 15), which are both traditionally negative for the markets. Both retrogrades have displayed their prowess, but will end next week, which provides hope for calmer market conditions.
Longer-term, the planet Jupiter remains in the sign of Leo until July 26, 2027, highlighting fashion, self-pleasing products, creativity, and travel (signified by the Consumer Discretionary sector), as well as leadership, defense, and gold (Please refer to our Trader Transits – Jupiter in Leo blog, dated 6-12-26, for further information). Consumer Discretionary stocks, that usually rally in the holiday shopping period, have stalled with continued low Consumer Sentiment and Confidence readings, based on high interest rates. Travel-related stocks (sensitive to oil prices) finally received a boost with the large drop in crude oil, though remain vulnerable with the ongoing military conflict status (or “perceived” status).
Also, as discussed heavily in recent months, Uranus (sudden, unexpected events/high technology) will remain in the sign of Gemini (communications, transportation, advanced technology) until 2033. Strong Uranus’ energies have continued since the end of May, when Uranus entered the sign, with unexpected reversals in both directions (especially with technology), as the market remains choppy and cannot seem to make up its mind (Gemini). Please also review our Trader Transits – Uranus in Gemini blog, dated 3-30-26.
As we have noted for over 1 year now, sectors of the technology industry that are likely to continue their advance into the future include AI, robotics, quantum computing, and space development, with Pluto positioned in Aquarius, and Uranus in Gemini, for many years to come, though they will experience pullbacks (sometimes sizeable) along the way.
Gold (ruled by the Sun), and Silver (ruled by the Moon), received a boost this week, as the safe-haven trade returned to popularity after the exit from technology, and the declining U.S. Dollar. This situation is tentative (and potentially temporary) in current economic conditions, so be cautious. The Gold to Silver Ratio fell slightly for the first time in weeks, to 78.3, down 0.6 points from last week’s close of 78.9, remaining rather neutral, though slightly favoring silver. We have stressed over the past several months that both metals remained good buys after pullbacks, so long as central banks continue to buy and Safe-Haven investments remain popular. Central banks have recently been a bit erratic with their purchases, however, as rising treasury yields have made bonds more popular in the short-term. It remains to be seen of that changes as bond yields have started to decrease.
Finally, Bitcoin (ruled by Uranus), spiked briefly mid-week, but settled flat by week’s end. Its Fear & Greed Index remains in the Fear level, ending the week 3 points lower, at 32, after closing last week at 35. No current catalyst is present for crypto, as the recently discussed Clarity Act has stalled in the Senate and still awaits the next step. Please review our Did You Know? – About The Clarity Act blog, dated 7-26-26, for further information.
***As always, this information is not intended to be financial advice, or any specific buy or sell recommendation, but rather a guide to assist the reader in some further understanding of current economic conditions/movements in the sky, and how they can affect moods, behaviors, world events, and financial markets.
