Sector RS Rank Oct 23: Oil Services Lead, Euro Defense Fall

💡 Today's US market in three lines

① Today's three stocks: Zscaler · Qualys · Seadrill — a cloud security vendor up +7.31%, a vulnerability management firm at a one-year closing high, and an offshore driller up +6.42%.

② On October 23, the S&P 500 fell -0.52% to 7,623.68 and the Dow dropped -1.23% to 52,215.16. Only 45 of the 129 ETFs in our universe closed higher, and 8 of the 11 sector SPDRs fell.

③ The VanEck oil services fund rose +5.40%, while the Select STOXX Europe defense fund fell -4.13%.

• 🧭 Why Leaders Keep Leading — Reading Sector Rotation Through RS and RRG

 

Today's Sector Relative Strength (RS)

Oct 23 Sector RS — 129 ETFs · RRG v2

• Oil services and cybersecurity jumped. The Dow fell hardest. Most funds closed lower for a second day.
• The S&P 500 closed at 7,623.68, down -0.52% or 39.75 points. The Nasdaq slipped -0.21%, or 53.52 points, to 25,955.34. The Dow fell -1.23%, or 652.82 points, to 52,215.16, the weakest of the three. Style funds offered no shelter. The Russell 1000 Growth fund (IWF) fell -0.40%, and the Russell 1000 Value fund (IWD) lost -0.63%. The equal-weight S&P 500 fund (RSP) dropped -0.77%, so the average stock did worse than the index.
• Breadth stayed weak. Only 45 of the 129 funds in our universe closed higher, 82 fell, and two were flat. Three of the 11 sector SPDRs rose. Energy led at +2.60%, followed by technology (+0.49%) and real estate (+0.12%). Consumer staples fell the most, at -1.92%, one day after leading the market. Communication services lost -1.78% and consumer discretionary -1.66%.
• Reports tied the selling to the same worries as Thursday: doubts about the payoff from AI spending, oil above $100 a barrel, and the Fed meeting next week. American Express fell -3.68% and Caterpillar -2.42%, two of the largest Dow decliners. AT&T dropped -7.96%. The VIX rose +2.21% to 19.45. The 10-year Treasury yield edged up to 4.99% from 4.95%. Brent crude closed at $111.66, and reports said it touched its highest level since May during the session after Houthi strikes on Saudi oil facilities. Gold futures fell -1.24% to $4,010, and Bitcoin was flat at -0.05%.

 

Today's Leading Sectors TOP 5

• Basis: top 5 by 1-month RS rank on the 'Sector RS (US)' sheet — 129-ETF universe, October 23, 2026. Daily moves are measured from Yahoo closing prices. Trend columns compare price to its 1-month, 1-quarter, and 1-year moving averages.

ETF	1-Day	RS Rank 1M	Short-Term	Mid-Term	Long-Term
WisdomTree Cloud Computing (WCLD)	+2.50%	98	🔺	🔺	🔺
iShares Cybersecurity and Tech (IHAK)	+4.17%	97	🔺	🔺	🔺
United States Oil Fund (USO)	+4.32%	96	🔺	🔺	🔺
Global X Cybersecurity (BUG)	+4.98%	96	🔺	🔺	🔺
Energy Select Sector SPDR (XLE)	+2.60%	95	🔺	🔺	🔺

• All five rose on a day when most funds fell, and all five sit above all three moving averages. The list changed completely from Thursday. Health care, consumer staples, and retail dropped out after one session. XLV now ranks 91, XLP 90, and XRT 90. Cloud, cybersecurity, and oil took their places. USO moved up from 79 to 96 in a week, and its 1-month gain of +10.74% matches XLE's +10.75%.

 

Why They're Strong — Sector Issues

WisdomTree Cloud Computing WCLD Daily

· Cloud software (WCLD) — WCLD ranks first at 98 and is up +11.83% over five sessions. Its security holdings did the work on Friday. Netskope rose +9.37%, Zscaler +7.31%, Tenable +6.17%, and Asana +4.52%. The fund is up +12.24% over one month, the best 1-month return in our universe.

SPDR Energy XLE Daily

· Energy (XLE · USO) — Oil stayed above $100 as Houthi attacks on Saudi facilities kept supply at risk, according to reports. USO rose +4.32%, and XLE +2.60%. ConocoPhillips gained +3.55%, Chevron +2.88%, and ExxonMobil +2.79%. Ovintiv rose +4.29% and Murphy Oil +4.65%, a one-year closing high. The First Trust natural gas fund (FCG) added +3.45% even as natural gas itself fell.

 

1-Month RS Trend

45-Day RS Trend — 5 Sectors

• The 45-day chart tracks oil services, cybersecurity, humanoid robots, European defense, and natural gas. The VanEck oil services fund (OIH) started the window at 74, fell to 5 on October 1, and has climbed back to 66 on this price-based line. The sheet ranks it 64. The Global X cybersecurity fund (BUG) dropped to 19 on September 11, reached 100 on September 21, and sits at 92 against 96 on the sheet. The Roundhill humanoid robotics fund (HUMN) touched 75 on October 2 and is at 35, close to its sheet rank of 40. The Select STOXX Europe defense fund (EUAD) began the window at 78 and is now 25, with the sheet at 22. The US natural gas fund (UNG) reached 100 on October 14 and has dropped to 9. The sheet still has it at 37.

 

RS Breakdown Warnings (big 5-day drops)

· Natural gas collapsed on the RS line. UNG fell -80 points in five sessions, from 89 to 9. The fund is down -10.13% over the same stretch. On the sheet, it went from 90 to 37.

· Communication and media funds lost ground. The Roundhill metaverse fund (METV) fell -31 points, from 91 to 60, and the communication services SPDR (XLC) -30 points, from 64 to 34. XLC is down -4.36% over five sessions. The Roundhill Magnificent Seven fund (MAGS) lost -26 points, from 79 to 53, and the Global X social media fund (SOCL) -22 points, from 76 to 54. The sheet shows the same direction: METV 93 to 81, XLC 63 to 43, MAGS 81 to 63, and SOCL 78 to 58.

· The VanEck oil refiners fund (CRAK) fell -21 points, from 84 to 63, and the VanEck video gaming fund (ESPO) -19 points, from 90 to 71. Their sheet ranks fell from 81 to 53 and from 96 to 75. The chip funds did not recover. The iShares semiconductor fund (SOXX) sits at 12 on our line and 34 on the sheet.

 

RS Rebound Signals (sharp bounces off the bottom)

· Sports betting led the bounces. The Roundhill sports betting fund (BETZ) gained +44 points in five sessions, from 9 to 53. The SPDR biotech fund (XBI) added +31 points, from 19 to 50, and the Invesco solar fund (TAN) +28 points, from 17 to 45. On the sheet, BETZ rose from 10 to 24, XBI from 32 to 46, and TAN from 16 to 21.

· HUMN gained +24 points, from 11 to 35, and the SPDR pharmaceuticals fund (XPH) also +24 points, from 20 to 44. The Global X SuperDividend REIT fund (SRET) rose +23 points, from 34 to 57, and the Invesco KBW bank fund (KBWB) +21 points, from 38 to 59. Their sheet ranks rose from 13 to 40, 25 to 35, 28 to 49, and 23 to 49.

 

Today's Top Rising Sectors TOP 5 (by 1-day %)

• Basis: top 5 by October 23 closing move — 45 of 129 rose on the day. RS ranks from the 'Sector RS (US)' sheet.

ETF	1-Day	RS Rank 1M	Short-Term	Mid-Term	Long-Term
VanEck Oil Services (OIH)	+5.40%	64	🔺	🔽	🔺
iShares U.S. Oil Equipment & Services (IEZ)	+5.35%	58	🔺	🔽	🔺
Global X Cybersecurity (BUG)	+4.98%	96	🔺	🔺	🔺
United States Oil Fund (USO)	+4.32%	96	🔺	🔺	🔺
iShares Cybersecurity and Tech (IHAK)	+4.17%	97	🔺	🔺	🔺

• Two groups filled the list: oil and cybersecurity. OIH and IEZ posted the largest gains but rank only 64 and 58. Both sit above their 1-month and 1-year averages and below their 1-quarter average. OIH is up just +0.80% over one month. BUG, USO, and IHAK made both lists. They rank near the top and also led the day.

 

Why They Rose — Sector Issues

VanEck Oil Services OIH Daily

· Oil services (OIH · IEZ) — SLB jumped +7.08% after its third-quarter report. Revenue rose +6% from a year earlier to $9.45 billion. Adjusted EPS was $0.64, ahead of estimates, according to reports, though GAAP EPS fell -2% to $0.49. The company cited stronger North American activity and a gradual recovery in the Middle East, according to reports. Halliburton rose +5.21%, NOV +5.33%, Baker Hughes +4.18%, and TechnipFMC +4.59%. Offshore drillers joined in: Seadrill +6.42%, Valaris +5.58%, and Transocean +5.43%.

Global X Cybersecurity BUG Daily

· Cybersecurity (BUG · IHAK) — CrowdStrike rose +8.25%, SailPoint +8.62%, Zscaler +7.31%, Cloudflare +7.29%, and Palo Alto Networks +7.22%. Reports pointed to an Evercore ISI channel partner survey that showed a firmer outlook for security budgets, with spending aimed at securing data, AI, and identities. BUG is up +12.61% over five sessions and IHAK +10.94%. Both rank 96 or higher.

 

Leading Sectors: Cloud Software, Cybersecurity, Oil

• ① Software took the lead back. WCLD ranks 98 and is up +11.83% over five sessions. IHAK ranks 97 and BUG 96, and both gained more than +4% on Friday. The three sit above all three moving averages. Their 1-month returns of +12.24%, +8.47%, and +7.03% lead most of the universe.
• ② Oil held its place. USO ranks 96 and XLE 95, and both are up more than +10% over one month. The oil services funds moved first on Friday. OIH gained +5.40% and climbed from 26 to 64 on the sheet in a week.
• ③ The weak side was European defense, natural gas, and precious metals. EUAD fell -4.13% and ranks 22. We found no single headline for the drop. Its largest European holdings closed slightly higher in local trading on Friday, and reports earlier in the week tied weakness in the group to signs of progress in Ukraine diplomacy. UNG fell -3.13% as November natural gas futures slipped, according to reports. The Global X silver miners fund (SIL) lost -2.54% as silver fell -1.47%. The SPDR insurance fund (KIE) dropped -2.34%, with Chubb -2.43% and Allstate -2.28%.
• ④ The last report covered the October 22 close. Its three picks, measured from that close to Friday's: Allegion +1.39%, Trex -1.35%, and Academy Sports -2.35%. The S&P 500 fell -0.52% over the same session. Only one of the three beat the index. Allegion closed at $178.98, below the $179.77 high it needed to clear but above its $159.00 checkpoint. Trex closed at $50.38, two cents above its $50.36 checkpoint. Academy Sports closed at $60.33, below its $61.19 checkpoint, though still above its 20-day average of $53.71. Recorded as is.

 

Today's Three Stocks — Zscaler · Qualys · Seadrill Stock Forecast

 

Zscaler (ZS) — 1-Month RS 95: A +7% Jump on Security Budgets

Zscaler ZS Daily

RS 1D	RS 5D	RS 1M	1M Return	Held By
98	100	95	+18.9%	Global X Cybersecurity

• Up +7.31% to $255.15, and +23.04% over five sessions. That is its highest close since November 25, 2025, though still -24% below its one-year high of $336.27 from November 3, 2025. Zscaler sells cloud-based zero trust security. Reports tied Friday's move to the Evercore survey and to price target increases that followed the company's investor day on October 6, where it set a target of more than $8 billion in annual recurring revenue by fiscal 2031. For the quarter ended July 31, revenue rose +25% to $898.2 million, according to the company's September release. Fiscal 2026 revenue was $3.35 billion, and annual recurring revenue reached $3.77 billion. The company guided fiscal 2027 revenue to $3.91 billion to $3.94 billion, about +17% growth, a slower pace. It still reports GAAP losses: the net loss was $13.9 million in the April quarter. The Zscaler stock forecast depends on whether the first-quarter report in December confirms the budget survey.

 

Qualys (QLYS) — 1-Month RS 95: A One-Year Closing High

Qualys QLYS Daily

RS 1D	RS 5D	RS 1M	1M Return	Held By
93	99	95	+18.5%	iShares Cybersecurity and Tech

• Up +4.08% to $216.70, and +19.69% over five sessions. That is its highest close in at least a year, above $208.20 from Thursday. Qualys sells cloud-based vulnerability management and compliance software. We found no company headline for Friday. The stock moved with the security group. For the quarter ended June 30, revenue rose +11.0% to $182.2 million from $164.1 million. Operating income rose +20.4% to $61.9 million from $51.4 million. Net income rose +10.8% to $52.4 million, and EPS was $1.50, up from $1.29. In August the company raised its 2026 revenue outlook to $732 million to $738 million, according to reports. The third-quarter report is scheduled for November 3, according to reports. The Qualys stock forecast depends on whether revenue growth holds above +10% in that report.

 

Seadrill (SDRL) — 1-Month RS 87: An Offshore Driller Back Above $52

Seadrill SDRL Daily

RS 1D	RS 5D	RS 1M	1M Return	Held By
97	95	87	+12.6%	iShares U.S. Oil Equipment & Services

• Up +6.42% to $52.35, and +10.79% over five sessions. That is its highest close since May and about 4% below its one-year high of $54.80 from May 18. Seadrill operates offshore drilling rigs, mostly drillships. We found no company headline for Friday. The stock moved with the oil services group after SLB's report. On October 12 the company announced a $420 million rig award in Indonesia and contract extensions in Malaysia and Angola, according to reports. For the quarter ended June 30, total revenue rose +19.1% to $449 million from $377 million. Operating income rose to $72 million from $6 million. Net income was $29 million, against a net loss of $42 million a year earlier, and EPS was $0.47, up from -$0.68. Earnings swing with rig utilization, so the first two quarters of the year were weaker. The third-quarter report is scheduled for November 3, according to reports. The Seadrill stock forecast depends on whether the new contracts keep day rates and utilization rising.

 

Zscaler · Qualys · Seadrill Stock Forecast Checkpoints

· Zscaler stock forecast — The stock is up +23.04% in five sessions. Watch whether it holds above $237.76, Thursday's close and the prior high of this run. A drop below $216.25, its 20-day average, would end the short-term uptrend.

· Qualys stock forecast — The stock broke a one-year closing high. Watch whether it holds above $208.20, the prior high from Thursday. A drop below $193.49, its 20-day average, would put it back under its short-term trend.

· Seadrill stock forecast — The stock is about 4% below its May high. Watch whether it clears $54.80, its May 18 closing high. A drop below $46.71, its 20-day average, would end the short-term uptrend.

 

What to Watch on Next Week's Calendar

• Fed rate decision, Wednesday, October 28, 2:00 p.m. ET, then September PCE inflation and third-quarter GDP, Thursday, October 29, 8:30 a.m. ET. The 10-year yield rose to 4.99% on Friday, and the Dow fell -1.23%. This is the first meeting since the September 16 rate hike. Oil above $100 feeds the inflation side of the decision, and the PCE report will show how much of that has reached prices.
• Microsoft and Alphabet results, Wednesday, October 28, 4:00 p.m. ET; ServiceNow results the same evening; Amazon results, Thursday, October 29, 4:00 p.m. ET. SK hynix reports Tuesday, October 27, 8:00 p.m. ET, and Samsung Electronics, Wednesday, October 28, 9:00 p.m. ET. WCLD ranks 98 and BUG 96 on security budget hopes. The cloud results will show whether enterprise software spending is holding up, and the chip results will test SOXX, which sits at 12 on our RS line.
• Israel election, Tuesday, October 27; Phillips 66 results, Wednesday, October 28, 8:00 a.m. ET; Chevron results, Friday, October 30, 8:00 a.m. ET. OIH rose +5.40% and USO ranks 96 as Houthi strikes kept Brent above $110. The election bears on the Middle East risk premium in oil, and Chevron's report will show what the quarter's prices did to cash flow. China's Communist Party plenum runs Monday, October 26 to Thursday, October 29, and Freeport-McMoRan reports Tuesday, October 27, 8:00 a.m. ET, as the copper fund (CPER) lost -21 points on our RS line.

 

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