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Power Hour #41 Bearish

Power Hour #41: Regime Shift: The Dam Breaks – Friday 5/15/2026

May 15, 2026 3:08
Tickers Mentioned
Episode Summary
The market experiences a violent regime shift as breadth collapses by 52 points, signaling a move to a Very Bearish environment. The hosts outline an immediate defensive playbook: amputate weak longs in utilities, hold defensive leaders like JDZG, and avoid new entries until stability returns.
Key Takeaways
  • Sentiment crashed to 4% Very Bearish.
  • Breadth above 20 SMA dropped 52 points.
  • Utilities sector hits new low at -1.83.
  • JDZG surges 33.5% in defensive rotation.
  • Inflation fears driving index weakness.
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Power Hour Brief: May 15, 2026

Regime Check — Where Are We Now?

  • The market regime has violently shifted to Very Bearish with sentiment at 4%, down from yesterday’s 278 Bull signals.
  • Breadth is contracting severely as the percentage of stocks above the 20 SMA collapsed from 96% to just 44% in one session.
  • While Technology ATR remains elevated at 4.07, the Utilities sector has hit a new low of -1.83, signaling a flight to safety or total capitulation.
  • Today’s character is a definitive reversal day, marked by a 52 percentage point drop in stocks holding above their 20-day moving average.

Strategy Signals — Continuation, Reversal & SIP

  • The strongest 2LYNCH (Continuation) signal is JDZG at $2.23, surging 33.5% with 3.2 RVOL in the Consumer Defensive sector.
  • Reversal pressure is overwhelming with 263 signals, led by KSTR at $24.65 (-2.1%) and FLTW at $88.79 (-4.7%) showing massive volume spikes.
  • SIP leaders like WYY ($8.98) posted better-than-expected Q1 results but are facing broader index weakness driven by inflation fears.
  • Apply action code ABC (Always Be in Control) as the 40 SMA breadth dropped 10.3 percentage points, indicating a fragile technical structure.

Closing Playbook — What To Do Now

  • CLOSE any long positions in QTI ($6.71) and CLDI ($0.19) immediately, as both are trading lower post-offering or on weak results.
  • Consider entering a small FFM (Find Free Money) position in JDZG only if it holds $2.20, given its 33.5% gain and defensive sector rotation.
  • Since SPY index data is unavailable, monitor the Utilities sector at -1.83; if this level breaks lower, expect further downside into the close.

Tomorrow’s Early Look

  • Watch for overnight reaction to the DIA note citing “Indices down on inflation” as the primary catalyst for the next session.
  • Set alerts for WYY at $8.98; if it holds above the open after yesterday’s earnings beat, it could lead a defensive rally.
  • The regime outlook suggests a neutral-to-bearish start unless the 44% breadth reading stabilizes above the 20 SMA level.
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