1. US equities vulnerable to a sharp shift if technical support levels break.

J.P. Morgan's technical strategist, Jason Hunter, says the S&P and Nasdaq are testing key price levels, leaving US equities vulnerable to a sharp shift if they break.
"We maintain a cautious near-term equity stance and favor defensive positioning until the (price) charts show either a bottoming process or capitulation," Hunter says.
"Since the early summer, we have viewed this area as a critical threshold for the market, below which, we think selling pressure, volatility, and correlation can dramatically increase."
“The sharp decline in Nasdaq futures also reflects concerns that a shift in political control could bring greater regulatory scrutiny of AI and Big Tech, at a time when investors are already questioning elevated valuations and rising AI spending.”

Below: Nasdaq on the 200-day moving average.

2. $3.46 trillion has been wiped out from AI stocks in October.

Below a snapshot of the biggest casualties.

3. Free cash flow could/will become positive again.

But it’s a leap of faith with a couple of years in between…

4. Deutsche Bank says “buy tech”.

The recent correction has been brutal and DB estimates that the unwind is already more than two-thirds of the way through a typical rotation.
DB’s conclusion is clear: the risk-reward now favors gradually rebuilding exposure and moving back to overweight.

5. “Central banks are buying gold at fastest pace since 2024”, says World Gold Council.

Central banks bought a net 321 tonnes of gold in the third quarter of 2026, marking the fastest accumulation pace since the end of 2024 according to the World Gold Council.
Among countries that disclosed their purchase totals, China bought the most, at 63 tonnes, followed by Poland at 41 tonnes. About two-thirds of estimated central-bank purchases were not directly disclosed by the countries’ monetary authorities. The WGC estimated actual purchase volumes using trade statistics, field surveys and other sources.
John Reade, the WGC’s chief market strategist, said the weakness in gold prices in the third quarter may have prompted central banks to increase their purchases. He explained that central banks expecting the dollar to weaken over the long term may have taken advantage of its recent strength to move funds from maturing U.S. short-term Treasury securities into gold.

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