Power Hour #44 Bullish

Power Hour #44: Regime Shift: The 50% Breadth Threshold – Wednesday 5/20/2026

May 20, 2026 3:14

Tickers Mentioned

AMBQ CVNA ROST SYNA PERI ENPH SPY QQQ IWM BOT

Episode Summary

The market flips to a bullish regime as sentiment hits extreme lows and breadth surges past 50%. Host and Analyst outline immediate action plans to cut losers like PERI and buy momentum in AMBQ, while setting strict validation criteria for tomorrow's session.

Key Takeaways

Sentiment hits 4% Very Bullish with 345 bullish signals
Technology sector volatility falls to 2.99 while leading gains
AMBQ leads continuation with 6.7% gain at $75.89
CVNA shows reversal potential at $65.79 with low risk
40 SMA participation rises 3.1pp to 50.59%

Regime Check — Where Are We Now?

Market breadth has shifted from a contracting morning to a very bullish afternoon close, with sentiment hitting 4% on the Bull/Bear survey.

Breadth expanded significantly as the % of stocks above the 40 SMA rose to 50.59%, up 3.1 percentage points from yesterday.
Technology sector volatility is falling at 2.99, yet the sector remains the primary engine for the 345 bullish signals recorded today.
Today’s character is a clear reversal day, as the 20 SMA participation dropped 11.0 percentage points while the 40 SMA participation surged.

Strategy Signals — Continuation, Reversal & SIP

Continuation (2LYNCH): AMBQ leads the breakout list at $75.89 with a 6.7% gain, showing 16.3% ATR momentum in the CHIPS sector.
Reversal Setup: CVNA offers a high-probability entry at $65.79 with a 3.9% gain and minimal 18.4% risk, signaling a potential trend change in Retail.
SIP Leaders: ROST is holding strong at $212.68 after guidance-driven gains, while SYNA maintains support at $123.64 following a price target raise.
Action Code: PLASTICS is the dominant theme today as Technology and Energy sectors drive the 4% “Very Bullish” sentiment reading.

Closing Playbook — What To Do Now

Close Positions: Trim exposure to PERI at $9.12 if it fails to hold the $9.00 psychological level, given its -14.5% drop and 2.3 RVOL.
Enter Setup: Consider entering AMBQ on a close above $76.00 to capture the continuation momentum in the semiconductor space before the bell.
Key Level: With index data unavailable, monitor if the 50.59% participation above the 40 SMA holds into the close to confirm the bullish regime shift for tomorrow.

Tomorrow’s Early Look

Catalyst Watch: Monitor overnight volume in ROST and ENPH to see if the guidance-driven moves from today sustain into the pre-market.
Setup Forming: Watch CVNA for a confirmed break above $66.50, which would validate the reversal signal and open a path toward $70.
Regime Outlook: If the 40 SMA participation remains above 50% tomorrow, the “Very Bullish” sentiment will likely extend, favoring continuation strategies.

Welcome to WaveRider Power Hour, your final hour tactical edge. Let's dive in. Okay, did you see the market just flip a switch? Oh yeah. I mean, one afternoon and we're suddenly very bullish? Exactly. Sentiment hit a 4% reading on the survey. 4%? That's an extreme. It is. And breath surged to 50.59% above the 40 SMA. Wait, really? That's the green light? That's the signal. This isn't a bounce. It's a regime shift. The 20 SMA participation dropped 11.0 percentage points today. Wow, that's a smoking gun, right? It is. The character changed from contraction to expansion instantly. So the tide turned. Like a switch flipped. Now we have to act before the bell. Right, right. What are we cutting? P-E-R-I. Cut it immediately if it fails to hold $9. It's at $9.12 now, right? Yes, but it's down 14.5%. The $9 level is the line in the sand. Okay, so we dump the dead weight. Exactly. We trim PERI to let the winners run faster. And the winners? Who are we buying? AMBQ. Enter on a close above $76. It's at $75.89, right? Yes, up 6.7%. That's the semiconductor momentum play. Oh, that's interesting. Tech volatility is at 2.99, supporting 345 bullish signals. So the sector is ready. It is. And we holding ROST and SYNA on strong support Hold those Right Don let them go They defending the levels Okay so is this a flash in the pan No but tomorrow is the test What's the test? Overnight volume in ROST and ENPH for sustainability. Huh, I didn't think of it that way. You have to watch CVNA too. It needs to break $66.50. $66.50. Yes. If it breaks that, the trend change is validated. And if it doesn't? Then the regime outlook is shaky. So the 50% breath number is key? Absolutely. The regime stays bullish only if 40 SMA participation holds above 60%. That's the threshold. It is. Technology remains the primary driver here. So if breath holds, we're good? If breath holds above 50%, we're looking at continuation. That's wild. It is. But if it drops, you know what that changes the plan. Okay, so check the levels now. Check $9 on PERI and $76 on AMBQ. And prepare for the morning bell? Yes. If the 50% threshold holds, we're in a new trend. Got it. Cut the losers, buy the momentum, watch the breath. Simple as that. Simple, but decisive. All right, traders, you have your orders. Execute before the close. Check your positions against those $9 and $76 levels now. Don't wait. And if breath holds above 50% tomorrow, we're ready. We are. That's the plan. That's the plan. See you at the bell. See you there. That's all for today's episode of Wave Rider Power Hour, your final hour tactical edge. See you next time.

Next Day Prep #263 Bullish

Try WaveFinder

Regime Check — Where Are We Now?

Strategy Signals — Continuation, Reversal & SIP

Closing Playbook — What To Do Now

Tomorrow’s Early Look

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