Monday could be one of the more revealing market sessions of the year. The bulls will be selling normalcy, hoping for a rally back toward the broken 85-day moving average. The bears will be watching for something uglier: the possibility that the AI investment boom has begun transitioning from unlimited promises to expensive financial reality. With our Aggregate Index below its 85-day line, the next major technical battleground could be the 200-day moving average.
Our new 44-page ChartPack examines that possibility from several directions: the 1929 comparison, Magic Ovals, State-Variance Extremes, Elliott wave structures, and U.S. versus global market trends. The central question isn’t whether Monday brings a bounce. It’s whether that bounce represents renewed strength—or merely another pause in a developing decline.
Meanwhile, the broader news picture is hardly comforting. Technology shares have been under pressure, enormous AI infrastructure commitments face increasing scrutiny, and geopolitical tensions continue to complicate the economic outlook. The danger is not any one headline but the possibility of several problems reinforcing one another: tighter financing, employment reductions, infrastructure disruptions, and political uncertainty arriving together.
Tuesday brings the midterm elections, with potential legal disputes adding to an already crowded calendar. We’ll also be watching JOLTS, Wednesday’s ADP employment report, Thursday’s Challenger layoff figures, and Friday’s federal jobs report. These should help distinguish a market correction from a more serious deterioration in the underlying economy.
This weekend’s complete 44-page ChartPack for subscribers is here:
ChartPack for October 31, 2026
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