Situation Awareness: Bullish. The market extended record highs for the second straight day, with S&P 500 (+0.3%) and Nasdaq Composite (+0.4%) closing at fresh all-time highs, driven by broadening participation and strong software and chip names. Trade mode for tomorrow: selective and defensive — continue to favor early strength in leadership, but resist chasing new intraday highs; favor pullbacks into established support. Today’s defining context: technology leadership (especially AI infrastructure and software) absorbed morning weakness and reopened the doors, while energy’s 1.6% surge on oil’s $94.71 close offered rotation fuel. Regime context — 65.9% of stocks closed above their 40-day SMA (vs 64.3% prior day, regime shifted from Cautious to Bullish), and the 4% Bull/Bear gauge shows 178 bulls vs. 87 bears. The 5-day trend turned up 3 of 5 days, signaling early recovery from Wednesday’s dip.
SIP: MRLN ORCL ALGS RAYA
- What’s working today: 2LYNCH: 124, D9M: 124, Reversal: 138 — momentum and continuation signals dominated, especially in chips, software, and aerospace
- Leading sectors: Technology (+2.38), Communication Services (+1.20), Financials (+1.53); leading themes: AI infrastructure (+1.98), chipmakers (+7.80 AMD), energy (oil +3.7%, RSPG -0.23)
- AMD delivered +7.80% on strong performance, joining MSFT as top “magnificent seven” mover
- Regime threading: morning SA called Cautious (64.3%), closing is Bullish (65.9%) — shift confirmed on improved breadth and closing higher despite early dip
- DEP watchlist: MSFT, COIN, ACH, BULL, FNGU — top D9M signals with high RVOL, institutional coverage, and upward momentum
- SIPS: MRLN, ORCL, ALGS — top swing candidates from Continuation scan with fresh catalysts and volume
Market Breadth — 2026-04-16
| Sentiment 4% | Bullish | 40SMA | Bullish |
| Bull 4% | 178 | Bear 4% | 87 |
| % > 20 SMA | 93% | % > 40 SMA | 65.86% |
| Bull 9M | 32 | Bear 9M | 10 |