Situation Awareness: Bullish. The market continued its climb, fueled by AI enthusiasm and hopes for a resolution in the U.S.-Iran conflict. The DJIA reclaimed the 50,000 mark, and the S&P 500 and Nasdaq Composite reached record highs. Trade mode for tomorrow: look for early strength and ride momentum. Today’s narrative centered around AI infrastructure demand, AMD’s earnings beat, and sinking oil prices. Regime context — 69.33% of stocks closed above their 40-day SMA (vs 66.78% prior day, regime held at Bullish), and the 4% Bull/Bear gauge shows 398 bulls vs. 201 bears. The 5-day trend turned up 4 of 5 days, signaling further upside potential.
SIP: AMD CVS DELL FLEX INTC
- What’s working today: D9M: 185, Catalyst: 102, Darvas: 308
- Leading sectors: Information Technology (+4.15%), Financials (+2.6%), Industrials (+1.41%); leading themes: AI, U.S.-Iran peace hopes, data center
- Key event: AMD’s earnings report ignited AI growth enthusiasm, lifting the entire tech sector.
- Regime threading: morning SA called Bullish (66.78%), closing is Bullish (69.33%) — held, as market momentum accelerated throughout the day.
- DEP watchlist: DOCN, INTC, FLEX.
- SIPS: ALGM, CNC.
Market Breadth — 2026-05-06
| Sentiment 4% | Very Bullish | 40SMA | Neutral |
| Bull 4% | 398 | Bear 4% | 201 |
| % > 20 SMA | 161% | % > 40 SMA | 69.33% |
| Bull 9M | 73 | Bear 9M | 27 |