Situation Awareness: Cautious. The tape enters the final session of a holiday-shortened week in hesitation mode ahead of the 8:30 ET June Employment Situation Report, with equity futures mixed — S&P +5 @ 7,548 and Dow +101 @ 52,769 pointing higher while Nasdaq futures sag -33 @ 30,061 as semiconductors buckle again after South Korea’s Kospi cratered -7.9% overnight on Samsung and SK Hynix. SPY/QQQ/IWM cash levels are data-unavailable this morning, so lean on the futures and breadth for structure. Trade mode: selective and defensive into the print, then let the number set the tone — early Treasury close at 14:00 ET and Friday’s full holiday closure will thin liquidity and amplify any post-data move. The dominant force is macro: the payrolls read (consensus 110K, prior 172K) collides with a market still digesting a monster Q2 and a fresh gross-margin scare. Regime context — 64.56% of stocks trade above their 40-day SMA, and the 4% Bull/Bear gauge shows 348 bulls vs. 214 bears. The 5-day trend is constructive but cooling: buy-the-dip lifted mega-caps into midweek before the semi rally reversed hard on 7/1, and the % above 20-SMA collapsed from 122% to 102%, signaling near-term momentum is bleeding out even as the broader base holds.
SIP: NKE AMPL SOC MSM
- What’s working: the Continuation/2LYNCH scan is rich at 32 signals — healthy breadth for a pre-holiday tape. Reversal scan is thin (2: C, BTDR) and Delayed 9M is empty.
- Leading sectors: live daily performance is offline (market closed) and Sector Volatility ATR is empty; signal-flow skews MEDICAL (IBRX, TEM, IRTC, KMTS) and SOFTWARE (KVYO, NAVN) as the active pockets.
- Key event: June Nonfarm Payrolls at 8:30 ET is the week’s marquee catalyst — a soft print greenlights the buy-the-dip crowd, a hot one reprices the front end.
- Market read: 7/1 was a rotation, not a rout — S&P -0.2%, Nasdaq -0.7%, PHLX Semi -6.3% but software (IGV +3.0%), Meta +8.8% and Apple +1.7% cushioned the blow. Chips staying weak into today keeps the Nasdaq heavy.
- DEP watchlist: no Delayed 9M signals today — nothing qualifying.
- SIPS: GRND (+9.2%, RVOL 2.4), TEM (+6.3%), KVYO (+8.3%) lead the swing candidates from the Continuation scan.