What parts of Financials to favor into earnings this week

In this roughly 6-minute video, Mark L. Newton, CMT, discusses the stock market outlook this week around Financials earnings and how the recent rebound in the S&P 500 Index (SPX) fits into his near-term technical work. He reviews Friday’s brief breakdown and Monday’s gap recovery using Elliott-wave structure, DeMark indicators, cross-asset volatility, and breadth, framing what that backdrop could imply for price action into mid-November 2025. Newton also touches on the ongoing wave of artificial intelligence–related deals, highlighting the VanEck Semiconductor ETF (SMH) and its relationship to prior DeMark exhaustion signals in the Philadelphia Semiconductor Index (SOX).

The core of the video focuses on which parts of the Financials sector he examines as potential ways to position into this week’s earnings. Newton compares the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) against the SPDR S&P Bank ETF (KBE), looking at their relative-strength ratio and absolute price trends. He also reviews regional banks via the SPDR S&P Regional Banking ETF (KRE) versus the Financial Select Sector SPDR Fund (XLF), discussing how these relative charts have behaved since 2022. The full report includes his charts, technical levels, and detailed sector and ETF analysis.

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