Situation Awareness: Cautious. The session played out as a “buy-the-dip” rally where major averages extended into record territory despite a narrow morning start, driven by a powerful rotation into semiconductor and AI infrastructure names. Trade mode for tomorrow: Selective and defensive, look for early strength in optical and power names while monitoring mega-cap stability. Today’s defining context was the market’s ability to shrug off Alphabet’s massive $80B equity raise and focus on the supply chain beneficiaries. Regime context — 52.2% of stocks closed above their 40-day SMA (vs 53.0% prior day, regime held at Cautious), and the 4% Bull/Bear gauge shows 190 bulls vs. 210 bears. The 5-day trend turned up 3 of 5 days, signaling early recovery momentum.
SIP: COHR GLW LITE MRVL HPE
- What’s working today: 2LYNCH (15 signals), D9M (9 signals), Reversal (6 signals) — Continuation breakouts in semis and optics dominated.
- Leading sectors: Information Technology (+0.9%), Utilities (+1.9%), Energy (+1.0%); leading themes: Solar Energy (+5.17%), Scientific/Measuring Instruments (+4.5%), Oil & Gas Machinery (+4.49%).
- Key event — Marvell Technology (MRVL) rocketed to record highs after NVIDIA CEO Jensen Huang called it the “next trillion-dollar company.”
- Regime threading: morning SA called Cautious (53.0%), closing is Cautious (52.2%) — held steady as breadth improved but remained below the 65% bullish threshold.
- DEP watchlist: GLW ($200.40), COHR ($426.89), LITE ($1029.15), MRVL ($290.79), CAT ($909.81).
- SIPS: APH ($148.49), TER ($392.33), ADI ($423.18) — all showing institutional continuation patterns.
Market Breadth — 2026-06-02
| Sentiment 4% | Bearish | 40SMA | Bearish |
| Bull 4% | 190 | Bear 4% | 210 |
| % > 20 SMA | 88% | % > 40 SMA | 52.23% |
| Bull 9M | 35 | Bear 9M | 19 |