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Midday Wave #42 Neutral

Midday Wave #42: Tech’s Tightening Grip: Breadth, SIPs, and the Afternoon Playbook – Friday 5/8/2026

May 8, 2026 3:44
Episode Summary
Breadth contracts to Neutral as Tech leadership tightens—INOD leads with institutional accumulation, while new SIP entries (AD, CPAY, MKSI) signal catalyst-driven momentum. Analyst outlines key watchpoints (FTAI, CIEN) and a 3-step afternoon adjustment plan.
Key Takeaways
  • Technology sector shows bullish momentum.
  • Energy sector is lagging considerably.
  • Breadth weakening from previous session.
  • INOD showing significant breakout continuation.
  • AD and CPAY are new SIP entries.
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Midday Wave Update – 2026-05-08

Midday Situation Check

Neutral regime — 40SMA breadth at 64.8% (down from 67.64% yesterday), 20SMA at 97%.

Market Recap — Session So Far

Market is mixed with no data available on SPY, QQQ or IWM index prices.

  • No data can be cited for index levels.
  • Bull 4% at 223, Bear 4% at 198, showing a shift from yesterday’s Very Bearish sentiment, where Bull 4% was 270 and Bear 4% was 337.
  • Volume pace cannot be calculated.

Momentum Watch — Breakout Continuation & SIP

  • INOD is the strongest continuation signal with a price of $82.75, up 81.3% with an RVOL of 7.3 in the BUSINS SVC sector.
  • New SIP entries include: AD (TELECOM) with a Better-than-expected Q1 EPS (price $49.3), CPAY (FINANCE) with Raised FY26 EPS and sales guidance (price $305.75), MKSI (CHIPS) with Price targets raised (price $300.79).
  • Additionally: NTRA (MEDICAL), NNI (FINANCE), OM (MEDICAL) and WYNN (LEISURE).

Strategy Check — Continuation, SIP & 20% Study

  • INOD, the strongest Continuation signal, at $82.75 and up 81.3% with RVOL 7.3.
  • New SIP entries include AD with Better-than-expected Q1 EPS and CPAY with raised FY26 EPS and sales guidance.
  • From the 20% Study, watch FTAI at $272.54 near supply, or CIEN at $538.76 near supply, both in the TELECOM and AEROSPACE/DEFENSE sectors showing potential momentum.

Quick Takes & Wrap-Up

  • RSPT — Watch for continued strength in the Technology sector which has shown a 2.04% change today, with current value at 4.9.
  • Energy sector — RSPG‘s downtrend continues; monitor for a reversal, with current value at -0.94.
  • Expect continued volatility. Follow momentum in Technology sector, and watch for potential reversals in Energy.
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