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Power Hour #104 Neutral

Power Hour #104: Trap-Day Alert: Tech Hides Cracking Breadth – Friday 9/11/2026

September 11, 2026 4:33
Episode Summary
Sentiment flipped bullish overnight, but breadth is quietly fading into the close, with only Tech and a Building & Electronics cluster carrying the tape. The team breaks down what to hold (IESC, ARW, SANM), what to cut (LEU, DSGX, UAL), and which setups—like CMC and continued SANM strength—to watch for confirmation tomorrow.
Key Takeaways
  • Breadth contracting: 20 SMA at 29%, 40 SMA at 31.66%
  • Technology ATR surges to 100th percentile, leading rotation
  • Building/Electronics cluster dominates continuation signals
  • Close LEU and trim DSGX into weakness before the bell
  • Index data unavailable — let breadth guide positioning
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Regime Check — Where Are We Now?

Breadth is contracting into the close even as the 4% sentiment reads bullish — a split-tape day where index-level confirmation is missing.

  • Breadth is fading: % above 20 SMA slipped to 29% from 31% (-2.0pp), and % above 40 SMA dropped to 31.66% from 34.04% (-2.4pp) — participation is narrowing, not expanding.
  • Leadership rotating into Tech: RSPT (Technology) ATR jumped to 0.46, a 100th-percentile reading and +2.56% on the day, while Industrials (RSPN -1.77) and Utilities (RSPU -2.45) stay pinned at the bottom.
  • Character is choppy-to-reversal: SPY, QQQ and IWM data are unavailable, so lean on internals — with Bull 4% at 132 vs Bear 4% at 50 (a big swing from yesterday’s 91/277), buyers stepped in but breadth divergence keeps it a stock-picker’s tape.

Strategy Signals — Continuation, Reversal & SIP

  • Strongest continuation (2LYNCH): IESC $344.45 leads at +7.8%, with ARW $227.76 +6.7% (RVOL 1.2) and SANM $216.55 +6.5% — the Building/Electronics cluster (EME, FIX, PWR, STRL) is the day’s clear power group.
  • Strongest reversal setup: CPA $129.95 +1.1% on RVOL 2.2 tops the bullish reversals; watch AVAV $145.03 (RVOL 2.0) reclaiming ground and CMC $66.86 near $67 as a base-building metals name.
  • SIP leaders: DSGX $71.32 posted better-than-expected Q2 (sentiment +2) but is fading -2.31% from open — momentum failing intraday; DKNG got a price-target raise and holds +0.3%.
  • SIP failures to avoid: LEU $165.80 down -4.87% from open on a UBS downgrade, and UAL $106.49 with an analyst target cut — no chasing weakness here.
  • Most relevant code — PLASTICS (Sector Winners): the Building/Electronics continuation wall (IESC, ARW, FIX, EME, PWR) plus surging RSPT ATR is textbook sector rotation to ride.

Closing Playbook — What To Do Now

  • Close/trim before the bell: exit LEU (-4.87% from open, downgrade) and lighten DSGX — good earnings but selling into the print is a red flag; don’t hold hope trades overnight.
  • Enter on confirmation (CRT): ARW $227.76 and IESC $344.45 into strength — use FFM discipline, keep risk ≤2.5%, and only add if they close near highs on the last-hour push.
  • Key level caveat: SPY/QQQ/IWM levels are unavailable today, so let breadth be your guide — if % above 20 SMA stabilizes above 29% into the close, the Tech-led bid carries; another leg down in breadth means stay defensive.

Tomorrow’s Early Look

  • Catalyst watch: monitor follow-through in the Building/Electronics leaders and any morning analyst actions like today’s DKNG raise and UAL/LEU cuts that set the tone.
  • Setup forming: CMC $66.86 coiling near $67 on RVOL 1.8 — a clean break above today’s high is a TTT/reversal trigger; SANM $216.55 also sets up as a continuation add if it holds.
  • Regime outlook: with breadth contracting under a rising Tech tape, treat tomorrow as ABC (Always Be in Control) — favor confirmed sector winners, keep size tight, and don’t assume a trend until breadth turns back up.
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