WaveRider Power Hour: Energy Surge Fuels Late-Day Action
Regime Check — Where Are We Now?
Regime remains bearish as the session progresses with weakening breadth.
- Breadth is contracting. The percentage of stocks above their 20 SMA decreased significantly from 58% yesterday to 43% today. The percentage above the 40 SMA also decreased from 69.62% to 63.8%.
- The Energy sector (RSPG) is leading with a current value of 1.86 and a rising trend, while Health Care (RSPH) suffers with a current value of -1.33.
- Today’s character appears to be a trend day favoring Energy, while other sectors show weakness.
Strategy Signals — Continuation, Reversal & SIP
- The strongest continuation signal is EVH, up 5.9% with a relative volume (RVOL) of 0.5.
- The strongest bullish reversal setup is XFLT, down -0.4% with an RVOL of 9.5.
- From today’s SIP data, PN shows considerable relative volume (RVOL 63.72), driven by news of acquiring the remaining stake, and a 15.69% change from open.
- PLASTICS is relevant today, with Energy (RSPG) outperforming most sectors.
Closing Playbook — What To Do Now
- Consider exiting ADT from the reversal list if it continues to show weakness, as it is already down -5.2%.
- Watch EVH for a potential breakout into the close; if it confirms, a long position could be considered.
- Data for SPY is unavailable; therefore, no price level can be given.
Tomorrow’s Early Look
- Check for any after-hours news impacting key sectors.
- Watch RSPG for continuation of its uptrend; a pullback to monitor is VAL.
- Given the bearish breadth, continue to favor short setups and watch for further downside momentum, but note today’s outperformance in Energy.