# Tech sell-off opens scope for a short-term rebound as oil tests S&P 500 uptrend

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/investing/45616
Published: 2026-10-31T21:20:43.000Z
Updated: 2026-10-31T21:20:43.000Z
Section: Investing

> Gareth Soloway sees scope for technical rebounds in heavily sold technology stocks, while the S&P 500's bullish setup depends on trend-line support and oil prices.

Sharp losses in major technology stocks have created conditions for a short-term technical rebound, while the S&P 500's broader uptrend remains intact. Oil prices remain a key constraint on whether equities can sustain a recovery.

In an October 31 interview with David Lin, Gareth Soloway, president of Verified Investing, said he was gradually moving money into heavily sold quality technology stocks while retaining some defensive exposure. He distinguished opportunities for short-term rebounds from the outlook over longer investment horizons.

Soloway said the better time to rotate into defensive stocks had been one or two months earlier, when AI and software shares were rebounding sharply. He attributed Nike's sustained recovery after an earnings-related drop to oversold conditions and money moving out of crowded technology positions. Hedge fund managers often shift capital between sectors before withdrawing it from equities altogether, he said, helping explain the rotation.

Rising volatility brings both trading opportunities and greater risk. Soloway noted that the VIX reached the mid-20s during Friday's session, suggesting fear was becoming a stronger influence on trading and that price swings could become more violent. He described his approach as buying during widespread panic and selling when optimism and greed become excessive.

Google's search and advertising business faces pressure from AI, but Soloway said its valuation was becoming more attractive for a short-term trade, provided trading conditions stabilize. He highlighted an area where a chart gap, previous lows and an ascending trend line converge. ServiceNow's 31% decline over two days had also brought it close to levels traded in April, putting it on his watch for a technical rebound.

For Intel, Soloway emphasized the importance of the investment horizon. He said enthusiasm about AI and US government backing had lifted the shares, while earnings had failed to support those expectations. Although cautious over one to three years, he identified the $60 area as a potential entry for a short-term trade targeting a 10%–20% rebound. His assessment separated a roughly one-month trading horizon from a longer-term investment case.

Soloway said his technically bullish assessment of the S&P 500 depended on the index holding the lower of two major trend lines. The upper boundary sits just above 8,000. He also pointed to the strong recovery from the lows in the equal-weight S&P 500, which gives defensive companies the same weight as other constituents, as evidence of strength beyond the largest technology stocks.

Oil remained the deciding variable in that assessment. Soloway said prices briefly broke above a wedge pattern on Friday before retreating in the afternoon and closing below the boundary. A sustained breakout would have brought $120 a barrel back into focus in his analysis. He said elevated oil prices were increasingly weighing on consumers and the economy, making their direction central to whether the equity rebound could continue into the following week.