Situation Awareness: Cautious, leaning constructive. The tape is being driven this morning by soft July producer inflation — headline PPI printed flat month-over-month versus the 0.1% consensus, and core PPI rose just 0.2% against a 0.3% estimate — reinforcing yesterday’s in-line CPI and keeping September rate-hike odds capped. Futures are modestly higher (S&P +5, Nasdaq +10 vs fair value) with sliding oil (WTI -2.1% to $81.49) providing a quiet tailwind. Index price and moving-average data are unavailable this morning, so lean on breadth rather than specific SPY/QQQ/IWM levels. Trade mode: selective and constructive — ride confirmed AI/semiconductor strength but respect the mixed mega-cap participation. The dominant force is disinflation feeding rate relief, with a $25B 30-yr auction at 1:00 ET as the day’s supply wildcard. Regime context — 60.66% of stocks trade above their 40-day SMA, and the 4% Bull/Bear gauge shows 308 bulls vs. 163 bears. The 5-day trend turned up, with the % above 20-SMA jumping to 126% from 115% and the 40-SMA gauge nudging to 60.66% from 60.12%, signaling broadening participation.
SIP: JMIA LQDA STRO
- What’s working: the Continuation/2LYNCH scan is rich with 26 signals — healthy breadth. Reversal scan is thin at 5. No Delayed 9M and no MAGNA53 prints, so momentum-continuation is the cleaner playbook than fresh episodic pivots.
- Market closed — no live sector/theme data. Sector Volatility (ATR) table is empty; lean on breadth internals, which show broadening leadership beyond mega-cap tech.
- Key event: July PPI came in soft across the board, and weekly jobless claims ticked up to 209K — the disinflation-plus-cooling-labor combination keeps the Fed sidelined narrative alive.
- Market read: yesterday was a narrow, contained advance — S&P +0.3%, Nasdaq +0.5%, DJIA flat — led by semis (SOX +2.5%) and AI names, offset by soft mega-cap discretionary/comm services. Constructive but not broad; today needs follow-through.
- DEP watchlist: no Delayed 9M signals today — nothing to feature; default to Continuation leaders.
- SIPS: FOUR (+7.0%), LGN (+5.7%), IRTC (+2.9%) from the Continuation scan.