Friday, November 13, 2026

Stats for 2026-11-13 (2nd week of the Month)

The Market Is Entering a Deeper Defensive Phase: Is a Larger Correction Taking Shape?

Weekly Market Trend & Sector Analysis | November 13, 2026

Market Regime: Late-Cycle Defensive Transition | Risk Level: Medium-High | Outlook: Next 1–3 Weeks

The stock market is sending investors an increasingly important message. Although the latest readings show a modest improvement in the S&P 500's momentum compared with last week, the broader market structure remains fragile. Healthcare, consumer staples, and dividend-oriented investments continue to attract strength, while several influential technology companies remain under pressure.

More importantly, the deterioration in median market capitalization and the continued weakness among major technology leaders suggest that investors are becoming increasingly selective. This is no longer simply a story about a temporary pullback in technology stocks. It is becoming a broader question about the durability of market leadership and the economy's ability to sustain its current growth trajectory.

1. Market Trend Analysis

Broad Market Momentum: A Small Recovery, But No Confirmed Reversal

The S&P 500 oscillator has improved slightly from -4 to -3. However, this remains negative territory and does not yet establish a meaningful recovery.

Looking across the four weekly observations, the index moved from mildly negative momentum in late October to considerably weaker readings in November. The latest improvement is encouraging, but it needs confirmation from subsequent weekly readings.

The broader market ETFs reinforce this cautious interpretation. The S&P 500 (SPY) and total stock market (VTI) remain negative, while small-cap exposure (IWM) also continues to show weakness.

Market Capitalization: An Important Risk Signal

One of the most concerning developments is the sharp decline in median market capitalization. After reaching its highest reading in the October 30 observation, the median has fallen substantially over the following two weeks.

This suggests that the composition of the screened stock universe is shifting toward smaller companies. Such a development can indicate reduced risk appetite and weaker participation among larger businesses.

The exchange distribution also changed significantly in November. Nasdaq's share of listed stocks increased from approximately 49% in late October to nearly 57%, while NYSE/Amex representation declined.

These figures describe the distribution of stocks in the screening universe, not actual institutional trading volume. Nevertheless, the combination of a declining median market cap and a changing exchange mix deserves attention.

Sector Rotation: Healthcare Is Becoming the Clear Leader

The strongest message from this week's ETF analysis is the continued dominance of defensive sectors.

  • Healthcare: XLV, XHS and VHT lead the momentum rankings. Healthcare services and broader healthcare exposure are particularly strong.
  • Consumer Staples: VDC and XLP maintain positive momentum, indicating continued interest in businesses providing essential products and services.
  • Dividend and Quality: SCHD, SDOG and COWZ demonstrate that investors are finding opportunities in quality-oriented and cash-generative businesses.
  • Software: XSW has positive oscillator momentum, but its sector ranking remains relatively weak. This is an early signal worth monitoring rather than confirmation of a technology recovery.
  • Financials: Despite strong fundamental quality among individual financial companies, broad financial ETFs remain relatively weak.
  • Consumer Discretionary: XLY remains negative, suggesting that cyclical consumer demand is not yet providing broad confirmation of economic strength.

An especially interesting development is the difference between fundamental quality and price momentum. The current GPA screen continues to identify high-quality businesses across financial services, healthcare, software and selected consumer industries.

Companies such as Mastercard, Visa and Eli Lilly demonstrate that strong fundamental businesses remain present. However, a high GPA does not automatically translate into positive short-term price momentum. The available weekly data does not establish a rising aggregate GPA trend, so this should be interpreted as a current quality signal rather than improving market-wide fundamentals.

Mega-Cap Leadership: Still the Market's Biggest Vulnerability

The performance of the largest technology companies remains a critical warning signal.

Apple and Microsoft continue to maintain positive oscillator readings, but several other influential companies remain negative. NVIDIA and Alphabet are particularly weak, while Meta and Tesla have improved slightly but have not recovered into positive territory.

Amazon is currently near neutral. Overall, the majority of the major technology leaders are still not participating in a convincing market recovery.

This matters because mega-cap companies carry substantial influence over major market indexes. When these companies weaken simultaneously, the broader market becomes more dependent on a smaller number of outperformers.

My interpretation: The market is experiencing a defensive and rotational transition rather than a broad-based bullish expansion. The recovery in Apple and the modest improvement in some other leaders are encouraging, but they are insufficient to confirm that institutional leadership has returned.

Market Regime and Risk Assessment

Market Phase: Late Trend / Defensive Transition
Market Sentiment: Cautious to Defensive
Risk Level: Medium-High
Breadth: Weak and increasingly selective
Preferred Style: Quality, Dividend, Defensive and Large-Cap Resilience

2. Economic Outlook

The current market structure is consistent with a late-cycle economic environment in which investors are becoming increasingly concerned about the durability of economic growth and corporate earnings. The preference for healthcare, consumer staples and dividend-oriented businesses suggests that market participants are placing greater importance on predictable demand and reliable cash flows rather than aggressive expansion. The continued weakness in several mega-cap technology companies raises questions about the sustainability of previous growth leadership. Meanwhile, the absence of broad commodity leadership and continued weakness in bond-related ETFs do not provide a clear confirmation of either a renewed inflation shock or an imminent recession. The more reasonable interpretation is that economic confidence is becoming selective, risk appetite is weakening, and investors are demanding stronger evidence of earnings resilience before committing capital to higher-risk investments. These are market-derived signals, not independent confirmation of GDP contraction or recession.

3. Investment Ideas to Research

My preferred approach in the current environment is defensive but not completely risk-averse. Healthcare and consumer staples deserve priority because they currently demonstrate the strongest combination of positive momentum and late-cycle characteristics. Dividend-oriented investments such as SCHD and NOBL can provide additional quality exposure, while SPLV offers a lower-volatility approach during periods of weakening market participation. I would remain cautious about aggressively increasing exposure to semiconductors, speculative technology and smaller companies until their momentum improves. Financials also require selectivity: strong individual businesses should not be confused with a strong sector-wide trend. The preference should be for quality and cash flow over speculative growth, with large-cap resilience favored over economically sensitive small-cap exposure. Capital should be allocated gradually rather than committed aggressively while the broad-market oscillator remains negative.

4. ETF Opportunities

The following ETFs deserve attention based on the latest momentum and sector rankings:

  • XLV – Healthcare Select: Leading defensive sector with strong positive momentum.
  • XHS – Healthcare Services: Exceptional oscillator strength, although historical drawdowns are substantial.
  • VHT – Vanguard Healthcare: Broad healthcare exposure supported by positive momentum.
  • SCHD – Schwab U.S. Dividend Equity: Quality and dividend-oriented exposure.
  • VDC – Vanguard Consumer Staples: Positive momentum in essential-consumption businesses.
  • XLP – Consumer Staples Select: Defensive exposure with positive oscillator readings.
  • SPLV – S&P 500 Low Volatility: Portfolio-stability candidate during weakening market conditions.
  • COWZ – Pacer US Cash Cows 100: Exposure to companies with strong cash-generation characteristics.
  • SDOG – ALPS Sector Dividend Dogs: Value and dividend-oriented exposure.
  • XSW – Software & Services: An early technology recovery candidate to monitor.

5. Top 7 ETFs to Research

Based on the current market environment, these are my seven preferred ETF candidates. The ranking considers momentum, sector positioning and suitability for a defensive late-cycle strategy.

  1. XLV – Health Care Select Sector SPDR Fund: My preferred defensive allocation, supported by strong momentum and the leading sector ranking.
  2. XHS – SPDR S&P Health Care Services ETF: One of the strongest oscillator readings in the entire ETF universe, offering exceptional relative strength.
  3. VHT – Vanguard Health Care ETF: Broad healthcare exposure with strong positive momentum and a favorable defensive profile.
  4. SCHD – Schwab U.S. Dividend Equity ETF: Combines dividend-oriented exposure with quality characteristics and positive momentum.
  5. VDC – Vanguard Consumer Staples ETF: Essential-consumption businesses are demonstrating continued relative strength.
  6. XLP – Consumer Staples Select Sector SPDR Fund: Another way to capture the defensive consumer-staples trend.
  7. SPLV – Invesco S&P 500 Low Volatility ETF: A potential portfolio stabilizer while broad-market momentum remains negative.

Portfolio consideration: XLV and VHT have substantial exposure overlap, as do VDC and XLP. These are seven research candidates, not a recommendation to purchase all seven simultaneously. Position sizing and diversification remain important.

What Could Happen Over the Next 1–3 Weeks?

My base-case forecast is continued market consolidation, with an elevated possibility of another pullback before a sustainable recovery develops.

The slight improvement in the S&P 500 oscillator is encouraging, but it is not enough to change the overall assessment. The declining median market capitalization, negative broad-market momentum and fractured mega-cap leadership suggest that investors should remain cautious.

There are two important developments to watch:

  • Bullish scenario: The S&P 500 oscillator turns positive, mega-cap technology participation improves, and strength expands beyond healthcare and consumer staples. This would suggest that the current correction is stabilizing and a broader advance could develop.
  • Bearish scenario: The index oscillator weakens again, NVIDIA and other mega-cap leaders remain under pressure, and defensive leadership continues to dominate. This would increase the probability of a deeper market correction.

Final Verdict: The market is transitioning toward a defensive late-cycle regime. This is a time to emphasize capital preservation, quality businesses and selective opportunities rather than chase broad-market rallies. The next few weekly readings will be important in determining whether the market is establishing a base or preparing for another leg lower.

Key Indicators to Monitor Next Week

There are three things I would particularly monitor in next week's data:

  • NVIDIA: Its oscillator deterioration is more concerning than the modest improvement in some other mega-cap stocks.
  • Median market capitalization: A stabilization or recovery would be an important early indication that risk appetite is returning.
  • Healthcare versus technology: If healthcare remains strong but technology begins recovering, that could signal a healthier market transition rather than an approaching broad correction.

Important Qualification

The analysis is based on market internals and stock-selection information, they do not include GDP, inflation, employment, credit spreads or direct liquidity measurements. Therefore, the economic outlook above is an interpretation of market behavior, not a definitive macroeconomic diagnosis.

Overall Assessment: Late-cycle defensive transition, late trend, medium-high risk. I would wait for broader participation before becoming aggressively bullish.

This analysis reflects market screening data and technical indicators as of November 13, 2026. It is a conditional market assessment, not a certainty or a substitute for individual investment research.


Stats for 2026-11-13 (2nd week of the Month)

List creation date: 2026-11-13

Median MarketCap: 8736

56.7% stocks on Nasdaq; 41.7% stocks on NYSE/Amex

Sector
Financials30%
Health Care17%
Information Technology15%
Consumer Discretionary13%
Industrials10%
Communication Services7%
Materials3%
Energy2%
Consumer Staples2%
Real Estate2%
Industry
Software15%
Biotechnology12%
Financial Services8%
Capital Markets7%
Insurance7%
Banks7%
Professional Services5%
Pharmaceuticals3%
Household Durables3%
Interactive Media & S3%
Health Care REITs2%
Media2%
Entertainment2%
Consumer Finance2%
Leisure Products2%
Textiles, Apparel & L2%
Hotels, Restaurants &2%
Distributors2%
Broadline Retail2%
Specialty Retail2%
Personal Care Product2%
Health Care Providers2%
Air Freight & Logisti2%
Oil, Gas & Consumable2%
Chemicals2%
Metals & Mining2%
Construction & Engine2%
Trading Companies & D2%
Country
United States90%
Canada3%
India2%
Israel2%
Switzerland2%
United Kingdom2%
GPASym(0gpaamp5) IndustrySectorMktCapCountryName
3.92MA Financial Services Financials 568530USMastercard
3.92CPAY Financial Services Financials 29113USCorpay,
3.92CRBG Financial Services Financials 15772USCorebridge Financial,
3.80V Financial Services Financials 792832USVisa
3.80FLYW Financial Services Financials 2631USFlywire
3.88IBN Banks Financials 121700IndiaICICI Bank Limited
3.84DCOM Banks Financials 1846USDime Commercial Bancshares, In
3.80CATY Banks Financials 4301USCathay General Bancorp
3.80TOWN Banks Financials 3342USTowneBank
3.96AAMI Capital Markets Financials 3356USAcadian Asset Management
3.92CBOE Capital Markets Financials 38486USCboe Global Markets,
3.88ICE Capital Markets Financials 99399USIntercontinental Exchange,
3.84NDAQ Capital Markets Financials 60297USNasdaq,
3.92MET Insurance Financials 64019USMetLife,
3.88AJG Insurance Financials 71108USArthur J. Gallagher &
3.84RGA Insurance Financials 17807USReinsurance Group of America,
3.80SKWD Insurance Financials 2783USSkyward Specialty Insurance Gr
3.80OPRT Consumer Finance Financials 542USOportun Financial
3.96ONC Biotechnology Health Care 47514SwitzerlandBeOne Medicines AG
3.96CDNA Biotechnology Health Care 4191USCareDx,
3.96VCEL Biotechnology Health Care 2930USVericel
3.92EXEL Biotechnology Health Care 17042USExelixis,
3.92KNSA Biotechnology Health Care 7569United KingdomKiniksa Pharmaceuticals Intern
3.88ALEC Biotechnology Health Care 365USAlector,
3.84REGN Biotechnology Health Care 95450USRegeneron Pharmaceuticals,
3.96LLY Pharmaceuticals Health Care 1271351USEli Lilly and Company
3.96ETON Pharmaceuticals Health Care 1772USEton Pharmaceuticals,
3.88PACS Health Care Providers Health Care 7619USPACS Group,
3.96ZETA Software Information Technology 9521USZeta Global Holdings.
3.92U Software Information Technology 22271USUnity Software
3.92DSGX Software Information Technology 8175CanadaThe Descartes Systems Group In
3.88GEN Software Information Technology 17620USGen Digital
3.88APPF Software Information Technology 7900USAppFolio,
3.88QTWO Software Information Technology 4507USQ2 Holdings,
3.80ADSK Software Information Technology 54233USAutodesk,
3.80FROG Software Information Technology 13793USJFrog Ltd.
3.80AVPT Software Information Technology 3441USAvePoint,
3.92SN Household Durables Consumer Discretionary 31020USSharkNinja,
3.80CRCT Household Durables Consumer Discretionary 1771USCricut,
3.96HAS Leisure Products Consumer Discretionary 16991USHasbro,
3.96FIGS Textiles, Apparel & L Consumer Discretionary 3760USFIGS,
3.96ABNB Hotels, Restaurants & Consumer Discretionary 106422USAirbnb,
3.92GCT Distributors Consumer Discretionary 2308USGigaCloud Technology
3.84GLBE Broadline Retail Consumer Discretionary 6890IsraelGlobal-E Online Ltd.
3.96FIVE Specialty Retail Consumer Discretionary 13607USFive Below,
3.96EXLS Professional Services Industrials 6496USExlService Holdings,
3.92EXPO Professional Services Industrials 4100USExponent,
3.88PCTY Professional Services Industrials 9297USPaylocity Holding
3.96TPC Construction & Engine Industrials 5274USTutor Perini
3.92FAST Trading Companies & D Industrials 63733USFastenal Company
3.92EXPD Air Freight & Logisti Industrials 25263USExpeditors International of Wa
3.92MAX Interactive Media & S Communication Services 754USMediaAlpha,
3.88QNST Interactive Media & S Communication Services 1095USQuinStreet,
3.92MGNI Media Communication Services 4212USMagnite,
3.96CNK Entertainment Communication Services 4758USCinemark Holdings,
3.88MEOH Chemicals Materials 5429CanadaMethanex
3.88RGLD Metals & Mining Materials 21588USRoyal Gold,
3.80EOG Oil, Gas & Consumable Energy 80687USEOG Resources,
3.88ELF Personal Care Product Consumer Staples 6715USe.l.f. Beauty,
3.80WELL Health Care REITs Real Estate 179683USWelltower

0GPA38TB (* means Wkly fast and slow Fract individually, stronger then SPY).

% AllocSymName_currentListSymActionSectorsharesHldDlrHldallocHldPrice
10% ABNBAirbnb IncABNB Consumer Discretionary6$1,120.79.3%$186.78
10% LLYLILLY ELI & CO LLY Health Care1$1,443.512.0%$1443.5
25% QQQPowershrs Qqq Trust Sr 1QQQ n.a.4$2,719.622.6%$679.89
25% SPYSPDR S&P 500 SPY n.a.4$3,017.525.1%$754.37
10% TXNTEXAS INSTRUMENTS TXN Information Technology4$1,214.410.1%$303.6
10% VVISA INC CL A V Financials3$1,277.310.6%$425.76
10%*WELLWelltower IncWELL Real Estate5$1,222.310.2%$244.46

These selected ETFs are ideas in the current market environment. (* means 6 Month Grt < 0; + means 2 Month Grt < 0)
Style</>% AllocSharesSymbolNameDate
growth5.252XLVHealth Care SelectLate Cycle to Recession 2026-11-13
growth5.251VHTHealthLate Cycle to Recession 2026-11-13
growth5.252VDCConsumer StaplesLate Cycle to Recession 2026-11-13
growth5.255XLPConsumer Staples SelectLate Cycle to Recession 2026-11-13
growth5.2514SCHDUS Dividend Equity 2026-11-13
growth5.257KIEInsuranceLate Cycle and Inflation2026-11-13
growth5.002VOEMid Cap Value 2026-11-13
growth5.006SPLVInvesco S&P 500 Low Volatility* 2026-11-13
growth4.503XLYConsumer Discretionary*Early Cycle2026-11-13
growth4.501VCRDiscretionary*Early Cycle 2026-11-13
growth4.5010XLUUtilities Select Sector*Late Cycle to Recession 2026-11-13
cyclical4.507NOBLProShares S&P 500 Dividend Aristocrats* 2026-11-13
cyclical5.008XLFFinancial SelectMid and Early Cycle 2026-11-13
cyclical5.006SDOGValue 2026-11-13
cyclical5.255XHEHealth Care EquipmentLate Cycle to Recession 2026-11-13
cyclical5.007XLEEnergy Select Sector Late Cycle and Inflation2026-11-13
cyclical5.253XHS Health Care ServicesLate Cycle to Recession 2026-11-13
cyclical5.255XRTRetailMid to Early Cycle2026-11-13
cyclical5.252XSWSoftware & Services 2026-11-13

These selected ETFs are early signal in the current market environment. (* means 6 Month Grt < 0; + means 2 Month Grt < 0)
Style</>% AllocSharesSymbolNameDate
growth5.252VDCConsumer StaplesLate Cycle to Recession 2026-11-13
growth5.255XLPConsumer Staples SelectLate Cycle to Recession 2026-11-13
growth5.252XLVHealth Care SelectLate Cycle to Recession 2026-11-13
growth5.251VHTHealthLate Cycle to Recession 2026-11-13
growth5.256SPLVInvesco S&P 500 Low Volatility* 2026-11-13
growth5.254XLYConsumer Discretionary*Early Cycle2026-11-13
growth5.2514SCHDUS Dividend Equity 2026-11-13
cyclical5.255XRTRetailMid to Early Cycle2026-11-13
cyclical5.258NOBLProShares S&P 500 Dividend Aristocrats* 2026-11-13
cyclical5.253XHS Health Care ServicesLate Cycle to Recession 2026-11-13

These selected stocks are ideas in the current market environment. Weekly and Monthly Fract better than SPY. * means Wkly fast and slow Fract individually, stronger then SPY.
#%AllocShareSymNameIndustryDateGPAVer

These stocks are from S&P500 which have a stong Oscillator. Spy Osc=-3
SymbolBoundOscMax
Fract
Percent
tile
Draw
Down
Draw
Down
7yr
cagr
7Yr
Namecagr
By
dd
score
MSI 0.5991.143-21-2518.53Motorola Solutions Inc.745.3
AAPL*0.4691.157-36-2327.20Apple Inc.1184.1
HLT 0.5961.064-31-3121.06Hilton Worldwide Holdings Inc.673.5
CTAS 0.5661.124-25-2319.82Cintas Corporation863.4
EBAY 0.4671.099-60-4919.55eBay Inc.393.2
RSG 0.5461.143-26-1916.51Republic Services Inc.863.2
MSFT*0.5261.135-30-2919.87Microsoft Corporation683.1
COST 0.5821.134-26-2020.33Costco Wholesale Corporation1011.2
SPY 1.00-31.092-33-1913.59SNP50071-3.0
CPAY 0.35240.396-26-2618.54Corpay Inc.718.4
V*0.59111.038-27-2113.14Visa Inc.626.5
LLY*0.39141.278-35-2143.93Eli Lilly and Company2095.5
GWW 0.5890.970-28-2124.43W.W. Grainger Inc.1165.2
MCK 0.36130.868-45-2033.53McKesson Corporation1674.7
LIN 0.8320.86-19-1814.19Linde plc781.7
PANW 0.1310.890-36-2734.47Palo Alto Networks Inc.1270.1
AMD*0.1100.995-77-5546.14Advanced Micro Devices Inc.830.0
WMT*0.5201.090-24-1917.95Walmart Inc.940.0
AMZN*0.3700.724-39-4717.23Amazon.com Inc.360.0
ANET 0.14-60.974-37-3049.33Arista Networks Inc.164-0.8
FTNT 0.09-100.965-36-3330.32Fortinet Inc.91-0.9
TSLA*0.23-80.538-53-5849.78Tesla Inc.85-1.8
RTX 0.33-81.042-21-2216.18RTX Corporation73-2.6
JPM*0.69-41.088-34-3415.21JPMorgan Chase & Co.44-2.8
PWR 0.16-211.193-47-2346.20Quanta Services Inc.200-3.4
META*0.25-140.811-30-30101.26Meta Platforms Inc.337-3.5
APH 0.28-151.193-33-2329.64Amphenol Corporation128-4.2
KLAC 0.13-331.296-40-3336.07KLA Corporation109-4.3
ORLY 0.61-70.916-21-1917.71O'Reilly Automotive Inc.93-4.3
MU*0.12-400.897-60-4449.65Micron Technology Inc.112-4.8
AVGO*0.19-261.275-25-2840.97Broadcom Inc.146-4.9
HUBB 0.35-140.949-23-2116.92Hubbell Incorporated80-4.9
GEV 0.16-351.153-27-2795.29GE Vernova Inc.352-5.6
FIX 0.10-561.093-38-3455.67Comfort Systems USA Inc.163-5.6
CASY 0.40-141.195-22-1922.70Casey's General Stores Inc.119-5.6
HWM 0.18-321.265-17-1753.04Howmet Aerospace Inc.312-5.8
NVDA*0.18-331.056-58-5263.50NVIDIA Corporation122-5.9
EME 0.21-301.185-36-3033.03EMCOR Group Inc.110-6.3
GOOG*0.30-221.091-34-3424.00Alphabet Inc.70-6.6
GOOGL*0.29-231.087-30-3424.22Alphabet Inc.71-6.7


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