Below are highlights from the NDW Morning Update Video for the morning of 10/20. Access the video on the NDW Morning Update Video page. 

• Monday’s trading (10/19) was relatively split between the names we typically look at. Towards the upside, risk on groups (NASD, SPX, EEM) rebounded after a somewhat rocky close to last week. On the other hand, the likes of gold (GC/) developed markets (EFA) and long-duration fixed income (TLT) struggled for the trading session.
• Overall chart movement was limited, seeing only TLT put in any movement on its default chart as it pushed one O lower. It remains a point of weakness among a poor fixed income group and should be avoided when possible.
• Last week brought a handful of interesting relative strength developments worth watching as we move into November. In terms of major movement: SPXEWI vs. SPX (equal weight vs. cap weight S&P 500) flipped back to favor SPXEWI in the short term as major leaders exhaled. Growth RPG moved lower against value RPV for the same reasons. Note that both SPX and RPG maintain their long-term strength.
• Tuesday morning’s earnings releases brought GE ~4% lower in premarket trading, and while it remains a 4/5 TA score name it recently broke a major trendline on its default chart. Keep a watchful eye over the name. MMM picked up roughly 2% off its report. It currently holds a 1/5 TA score and should be avoided for the time being. Netflix reports after close on 10/21. Having shed ~25% so far in 2026, it remains a low RS name heading into the call.
• In terms of notable names reporting on 10/21, monitor the likes of META, TSLA & LRCX, which all report after close. PM is a standpoint within a weak consumer staples sector. The 5/5’er remains in actionable territory for those of you looking for focused exposure to the group.

International equities still sit at the top of our Dynamic Asset Level Investing (DALI) rankings, but their lead over domestic equities has been dwindling. The two asset classes are only separated by one RS buy signal; international equities sits at 282 while domestic equities sit at 281. This signal count has remained the same since October 8, but their close positioning has been ongoing for many months. We have not seen either asset class be more than 15 RS signals ahead of the other since March of this year. Foreign stocks have been in the lead for almost all that time, except for a brief swap in August, but have still not been able to distance themselves from their domestic counterparts. On the other hand, US stocks have performed quite well throughout most of that span but could not take over the top position in the rankings.

The technical pictures of the two main international equity benchmarks tell a different story. Both funds have nearly identical fund scores (3.40 for EFA and 3.41 for EEM), but their score direction shows notable differences. The EFA fund score dropped by just 0.90 points from its peak, while EEM fell 2.32 points. So, while the current technical pictures may be similar, EEM had further to fall.

 We can look at the 1-point chart of the iShares MSCI EAFE ETF (EFA) to get a more consistent relationship between supply and demand. That chart sits in a clearly defined uptrend, remains on a buy signal reached in April, but has pulled back from all-time highs to sit below the middle of its trading band at a triple bottom formation at $102. Further support sits at $100, just below the current position, while additional support is seen at $94.

The iShares MSCI Emerging Markets ETF (EEM) has seen more near-term technical weakness. The default 1-point chart shows EEM in a column of Os and on two consecutive sell signals, trading just above support from July at $61. The chart remains in a long-term positive trend, but the recent weakness has been more pronounced. A reversal higher from here could still turn this action into a period of consolidation before further improvement. However, the outlook is bleaker now than it was a few months ago.

The next phase for emerging markets is not immediately apparent. Are we nearing the end of consolidation and going to continue higher, or is this the beginning of a broader long-term decline? Emerging markets tend to see quicker movement than the rest of the international equity space, as demonstrated by the decline over the past few weeks. EEM fell below -60% oversold last Friday, which is the lowest end-of-week OBOS level we have seen for EEM since the tariff-tantrum induced decline in April 2025. This is not below the level we would consider to be washed-out, but it does highlight a point to monitor in the weeks to come.

Another broader indicator that you can follow is the Ten Week for Emerging Market Equity Funds (^TWMUEMRGE). Like our other Ten Week focused indicators, this reading measures the percentage of all emerging market ETFs and mutual funds that are trading above their 10-week (50-day) moving average. We generally see very hot-and-cold action for this chart, meaning it will move coast to coast frequently as the emerging market funds are usually highly correlated. The extremes are still important to look at for near-term directional moves. Recently, we saw the TWMUEMRGE fall to 6%, dropping below 10% for the third time this year. That may sound like a lot, but it is relatively normal to see that many “wash-out” events for emerging market funds inside a calendar year. Still, it can be helpful to identify an opportunity that could lead to a spike in near-term demand. We can certainly see the chart push lower, and each move down from here is going to feel worse than when the indicator drops an O higher on the chart. Seeing this chart reverse back up would point toward a reprieve for emerging market declines.

The option suggestions featured here are pulled from the NDW Options Ideas tool. These are just a sample of the ideas that can be found there. The Options Idea tool contains numerous additional income and speculative plays. It also offers relative strength-based screens targeting the highest (and lowest) relative strength stocks and ETFs that have recently moved counter to their longer-term trend. To access or subscribe to the Options Ideas tool, click here.

Call

UnitedHealth Group Inc (UNH) Jan 15 $410 Call

Put

Oracle Corp (ORCL) Jan 15 $135 Put

Income

Zoom Communications (ZM) Nov 20 $89 Short Put