Situation Awareness: Cautious. The tape enters Friday in a holding pattern — futures point to a flattish-to-soft open (S&P futures -8, Nasdaq futures -80 vs fair value) as the two-day semiconductor rebound cools and oil stabilizes near $72/bbl. This is mechanical digestion, not a reversal: the market is coiled ahead of next week’s Q2 earnings ramp, with SK Hynix’s $26 billion Nasdaq debut at $149/ADS the wildcard for memory names that just surged. SPY/QQQ/IWM index prices are unavailable in today’s feed, so lean on breadth and sector tape rather than precise index levels. Trade mode: selective and watchful — let the first hour show its hand before pressing. Regime context — 62.2% of stocks trade above their 40-day SMA (up +2.4pp from 59.81%), and the 4% Bull/Bear gauge shows 240 bulls vs. 84 bears, a firmly bullish thrust. But the 20-day breadth cratered to 27% from 35% (-8.0pp), a warning that near-term momentum is thinning even as the longer trend broadens. The short trend is mixed — improving on the 40-day, deteriorating on the 20-day.
SIP: IONS AZN VRAX EDBL
- Continuation/2LYNCH scan is rich at 42 signals — good breadth for a flat-futures day; software leads the setups (FIG, S, GLBE, APPN, TTAN). Reversal scan is thin at 5 (TOST, PG, PLTR, SOUN, PAY). No Delayed 9M signals firing.
- Leading sectors (no live data — market closed): using ATR/tape context, information technology and semiconductors led yesterday (+1.8% IT, SOX +3.1%); consumer discretionary (+1.2%) and financials (+1.0%) followed. Laggards: consumer staples (-1.8%), energy (-1.6%).
- Key event: SK Hynix (SKHY) begins trading today after pricing its IPO at $149/ADS, 7x+ oversubscribed — watch for spillover pressure on recently surged memory names (MU, SNDK).
- Market read: Yesterday was a clean risk-on reversal — Nasdaq +1.3%, S&P +0.8%, Russell 2000 +1.2% — with money rotating back into AI/semis as oil and yields retreated. Today’s soft futures are profit-taking on that move, not a theme change.
- DEP watchlist: No Delayed 9M signals today — nothing on the D9M board.
- SIPS: FIG, GLBE, S — software continuation names with the strongest thrust off the scan.