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Midday Wave #44 Bearish

Midday Wave #44: Market Freefall: 88-Point Breadth Collapse – Tuesday 5/12/2026

May 12, 2026 3:17
Episode Summary
The morning breakout plan is scrapped as sentiment crashes to 4% and breadth collapses 88 points, signaling a deep bearish regime. Host and analyst identify critical support levels for OABI and RAL while warning traders to abandon long-only bias immediately.
Key Takeaways
  • 20SMA breadth plummeted 88 percentage points from yesterday
  • Sentiment remains at 4% indicating Very Bearish conditions
  • OABI leads gains with 7.5% surge on low volume
  • RAL and BWEN post strong results despite market weakness
  • CLSK and CVM suffer significant drops on earnings and offerings
0:00 / 3:17

Midday Wave: May 12, 2026

Midday Situation Check

Bearish regime — Sentiment at 4% (Very Bearish), with 40SMA breadth at 54.54% (down 5.3pp from yesterday’s 59.87%) and 20SMA breadth at 70% (down 88pp from yesterday’s 158%).

Market Recap — Session So Far

Index data unavailable for SPY, QQQ, and IWM, but breadth metrics indicate a sharp deterioration in market internals from the previous session.

  • Index Levels: Specific price data for major indices is unavailable; however, the market breadth suggests significant internal weakness.
  • Breadth Update: Bullish 4% sentiment sits at 97 versus 374 Bearish, while the 20SMA breadth collapsed from 158% to 70% overnight.
  • Volume Pace: While specific index volume is unavailable, the breadth contraction suggests a lack of broad participation in any potential intraday recovery.

Momentum Watch — Breakout Continuation & SIP

  • Top Continuation: OABI leads the pack with a 7.5% gain and 0.8 RVOL, followed closely by PTNR up 4.9% with 0.9 RVOL.
  • SIP Movers: RAL surged 4.62% after raising FY2026 EPS and sales guidance, while BWEN gained on better-than-expected Q1 results despite a -5.58% move from open.
  • Follow-Through: Morning breakouts in OABI and PTNR are holding, whereas CVM dropped 18.97% from open after a share offering.

Strategy Check — Continuation, SIP & 20% Study

  • Continuation Signal: OABI remains the strongest signal with a 7.5% move and 0.8 RVOL, showing resilience despite the broader bearish sentiment.
  • SIP Entries: RAL (4.62% change from open) and BWEN (better-than-expected results) represent the primary positive news flow, while CLSK (-2 sentiment) trades lower on worse-than-expected Q2 results.
  • 20% Study: NVDA trades between demand at 203.99 and massive supply, while KRYS sits at demand near 300.24 with a 49.27% ATR risk profile.

Quick Takes & Wrap-Up

  • OABI: Watch for a retest of the $1.79 level to confirm the 7.5% breakout holds in the afternoon session.
  • RAL: Key support sits at the $49.56 level following the guidance raise; a break below could signal profit-taking.
  • Overall Bias: Bearish — With 20SMA breadth down 88 percentage points and sentiment at 4%, expect continued pressure unless breadth stabilizes.
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