Situation Awareness: Bearish. The major averages finished mixed on Tuesday, with semiconductor strength lifting the Nasdaq to record highs while financials weighed heavily on the DJIA. Trade mode for tomorrow: selective and defensive. The market experienced a sharp divide between semiconductor strength and financial weakness. Regime context — 23.5% of stocks closed above their 40-day SMA (vs 23.9% prior day, regime held at Bearish), and the 4% Bull/Bear gauge shows 199 bulls vs. 91 bears. The 5-day trend shows a consistent downward sequence, confirming bearish momentum.
SIP: ZEO QNME PSKY
- Continuation signals were present with 2LYNCH: 5, D9M: 5, Reversal: 0.
- Leading sectors: Basic Materials (+2.09%), Healthcare (+2.02%), Technology (+0.25%); leading themes: Pharmaceuticals (+23.93%), Steel Producers (+3.99%), Semiconductor Equipment (+3.77%).
- The most impactful catalyst was President Trump’s continued support for AI development, boosting semiconductor stocks and the Nasdaq.
- Regime threading: morning SA called Bearish (23.9%), closing is Bearish (23.5%) — held at Bearish due to continued low breadth.
- DEP watchlist: IBRX, TGB, KGC, CRK, PBR.A.
- SIPS: BLLN, CLOV, SSL, WDC.
Market Breadth — 2026-09-22
| Sentiment 4% | Bullish | 40SMA | Neutral |
| Bull 4% | 199 | Bear 4% | 91 |
| % > 20 SMA | 92% | % > 40 SMA | 23.47% |
| Bull 9M | 12 | Bear 9M | 17 |