Midday Wave #70: The Bullish Trap: Sentiment vs. Breadth – Thursday 6/25/2026

Welcome to WaveRider Midday Wave, your mid-session market intelligence. Let's dive in. Okay, so sentiment flipped from very bearish to bullish in one morning, but the market's engine? It's sputtering. Why is the rally losing traction as it accelerates? That's the million-dollar question, isn't it? Because the headline says bullish, specifically at 4%. 4% bullish. Huge swing from yesterday. Huge. But look under the hood. While sentiment flipped, participation is tightening. The 40 SMA breadth is at 60%, down 0.2 percentage points. Down a bit on the 40? Yeah, but the 20 SMA? That dropped two full percentage points to 57%. Wait, two points? That's significant. It is. You've got 176 bull signals versus 126 bear signals. So technically it's net positive, but the participation rate is slipping. So it's a divergence. Exactly. It's like a car accelerating on a road that's slowly losing traction. The speed is up, but the grip is gone. That's wild. So if the grip is gone, who's actually holding on? Well, if you look at the medical sector, KYMR is leading the charge. KYMR. I saw that green number. It's up 17.6% with an ARVOL of 3.9. It's basically a sprinter exploding off the blocks on trial news. 3.9 times normal volume? That's serious. Totally. But then you have JEF, which is a different story. Oh, JEF. I heard about the earnings miss. Yeah worse than expected Q2 results triggered a negative SIP signal right at That the price And the volume is 2 times average It stumbling while KYMR is sprinting So we got a sprinter and a stumble What about the rest AGX and CAT are showing strong continuation. CAT hit $994.57, up 5.5%, even with mixed volume. $994.57. So they're holding up. They are. But that's Split validates sector strength while highlighting the danger of earnings reactions. Right. So the plan changes. How do we adjust for the afternoon? Honestly, stop chasing. Wait for the pullback. It's like waiting for the tide to recede slightly before stepping back into the water. Waiting for the tide. I like that. Yeah. If you're looking at KYMR, watch the $100 level on a pullback. That's your entry zone. $100 for KYMR. Got it. And for JEF, 5798 is critical. If that breaks, you see a fade. Critical support. Exactly. And with that 20 SMA breath contraction, you have to be careful. So the takeaway is caution over aggression? A hundred percent. The sentiment flip is masking a real contraction in breath. So traders need to prioritize support levels over momentum chasing. That's the key. Prioritize the levels. All right. Review your watch list for pullback entries at key support levels like $100 for KYMR and $57.98 for JEF before the close. Smart move. Thanks for the break down, Algenib. Stay sharp out there. You too, got crooks. That's it for WaveRider Midday Wave. Keep your stops tight and your eyes on the levels. We'll be back tomorrow. That's all for today's episode of WaveRider Midday Wave, your mid-session market intelligence. See you next time. Thank you.