Situation Awareness: Cautious, constructive undertone. Record-high tape cooling into a modestly lower open after last week’s ferocious rebound (S&P +3.6%, Nasdaq +5.2%), with S&P futures 14 points below fair value and Nasdaq futures off 57 as the market digests gains ahead of Wednesday’s July CPI. SPY/QQQ/IWM index levels are (data unavailable) this morning, so lean on breadth and futures for positioning. Trade mode: selective and patient — let the first hour show its hand before chasing, with a bull bias intact beneath the surface. The dominant force is a “bad-news-is-good-news” rate story: a soft July jobs report knocked September hike odds under 50%, while a fresh Iran/Strait-of-Hormuz headline is lifting crude toward $80. Regime context — 64.66% of stocks trade above their 40-day SMA, and the 4% Bull/Bear gauge shows 454 bulls vs. 143 bears. The 5-day trend turned up decisively last week, with breadth expanding for a second straight session (+3.7pp on the 40SMA), signaling broad participation rather than narrow mega-cap leadership.
SIP: FEAM GTN VATE NEPH
- What’s working: Continuation/2LYNCH is rich with 38 signals — healthy breadth. Reversal scan is thin at 3 (CCL, BA, YMM). No Delayed 9M signals today.
- Leading sectors: live trending data unavailable (market closed); the last completed week saw Info Tech +7.2%, Materials +5.6%, and Homebuilders (ITB +7.2%) lead, with Energy -3.3% the laggard on collapsing oil.
- Key event: July CPI Wednesday (consensus +0.1%, Core +0.2%) is the week’s primary catalyst; no U.S. data today.
- Market read: Friday’s session held the 7,700 S&P level and closed the week at record highs — momentum is intact but stretched, arguing for discipline into the print.
- DEP watchlist: No D9M signals today — nothing qualified.
- SIPS: IONQ, AVAV, CBRS from the continuation scan.