Regime Check — Where Are We Now?
Market breadth expanded today — % above 20 SMA rose to 53% (up 5.0pp from 48% yesterday), and % above 40 SMA climbed to 35.16% (up 3.0pp). Sentiment remains bullish at 4%, but only 4% of tickers are bullish, with a narrow bullish lead (Bull 4%: 150 vs Bear 4%: 48).
- Market breadth expanded — % above 20 SMA rose to 53%, % above 40 SMA to 35.16%.
- Financials and Industrials sector ATRs improved (both now +0.0% and +1.11% daily change), while Energy showed the strongest absolute gain (ATR +2.31).
- Today’s character: trending higher with moderate volume — not volatile, but sustained by sector rotation into financials and energy.
Strategy Signals — Continuation, Reversal & SIP
Continuation signals dominate early — Energy and Medical lead live momentum. SIPs show high volatility in micro-caps, while reversal signals remain moderate.
- Strongest continuation (2LYNCH) signal: DTI at $4.55 (+4.2%, RVOL 1.6, ATR%-M 2.9) — Energy sector breakout.
- Strongest reversal setup: WIX at $83.16 (+1.5%, RVOL 1.1) with low volatility — potential VCP bounce in Software.
- SIP leaders: RDGT down -14.39% post-split, AESI down -5.3% on convertible notes; but PFSA surged +28.69% on acquisition news.
- Action code: 2LYNCH — Energy and Medical leaders (DTI, KALV, BORR) confirm upward trend with >1.5 RVOL and positive sector ATR.
Closing Playbook — What To Do Now
Close weak reversal positions; watch for confirmation entries. No major SPY levels available — data unavailable.
- Close positions in RDGT or AESI — both SIP reversals (-14.39% and -5.3%) show high short-float and weak sentiment.
- Enter if DTI holds $4.50+ and breaks $4.60 — confirmed breakout with RVOL 1.6 and sector tailwind.
- SPY SMA data unavailable — no actionable SMA levels to cite for breakout confirmation.
Tomorrow’s Early Look
No major economic events scheduled for pre-market, but sector rotation may persist.
- Overnight catalyst: watch oil prices — Energy sector ATR remains high (+2.31) after BNO gained +8.21% yesterday.
- Setup forming for tomorrow: KALV at $20.72 (+4.1%, ATR%-M 4.2) — medical micro-cap with momentum + low float.
- Regime outlook remains bullish — breadth expansion supports continuation bias tomorrow, pending Fed chatter.