Weekly Market Update & SPY Technical Analysis
November has been a wild ride for the stock market so far, with technology and innovation stocks feeling the burn as investors run for the exists in fears of overextended valuations. But it’s not all bad, other parts of the market are beginning to see an uptick in activity, specifically the healthcare and oil industries. Investors should welcome this capital rotation as it helps alleviate the technology sector and begins moving capital to underperforming parts of the market.
What’s been happening?
Only a handful of mega-cap stocks have been doing the heavy lifting for this market, pushing the major indexes to record highs. Nvidia alone now makes up roughly 8% of the S&P 500, so a big move in just one stock can meaningfully swing the entire index. When you add in the rest of the “Magnificent Seven,” these names now account for about 37% of the S&P 500’s total weight, meaning a third of the index is effectively tied to a small group of AI-driven tech giants.
The problem is that the rest of the market isn’t keeping up. As of mid-November 2025, only about 43% of S&P 500 stocks are trading above their 50-day moving average and roughly 56% are above their 200-day. That’s lukewarm participation for an index sitting near all-time highs, and it signals weak market breadth…meaning the gains are concentrated in a narrow group of leaders instead of being spread across most stocks.
Put together, you get a market that looks strong on the surface but is increasingly fragile underneath: if Nvidia or a few other mega-cap tech names stumble, their outsized weights mean the index can correct sharply even if most stocks are just moving sideways.
What now?
As we’ve already mentioned, the money is not sitting still, it is moving to other industries. If this trend continues, it’ll actually make for a much stronger market and will solidify a rally in the indexes when technology stocks bounce back. Money is currently exiting tech and moving to healthcare and oil, which improves market breadth as those industries add more weight to the index.
But it’s also important to zoom out and acknowledge the macro pressures still hanging over the market. Layoffs have been rising at an uncomfortable pace, and the temporary government shutdown created a gap in key labor and economic data. When investors can’t clearly read the employment picture or gauge the health of consumers, it adds uncertainty, and uncertainty tends to keep volatility elevated.
Now that the government is reopening, we’ll slowly start seeing economic data again, which will ultimately improve or worsen investor sentiment. This week’s focus will be on the labor market. Thursday in specific will be the release of the U.S. unemployment rate, which is expected at 4.3%. Since sentiment is already weak but buyers are ready to pounce, any positive surprise can quickly restore confidence and push markets back towards records.
SPY Technical Analysis:
SPY has defended the 660.00-665.00 support zone twice this month, posting strong reversals every time it has visited that range. That makes the zone critical for buyers to maintain in order to avoid a move to 650.00. As for resistance, the 681.00 mark is the only major resistance before a potential retest of all time highs.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always conduct your own research or consult with a licensed financial advisor before making investment decisions.
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