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Power Hour #98 Bullish

Power Hour #98: The Fever Broke: Reading a Narrow Bull Flip Into the Close – Wednesday 9/2/2026

September 2, 2026 4:53
Tickers Mentioned
Episode Summary
Breadth flipped sharply bullish—334 bears to 205 bulls—but the rally is thin, with only 8% of stocks above their 20-SMA. The team breaks down which Power Hour leaders like OIH have real volume behind them, which names like SPOT and PCG to fade or cut, and the exact levels and confirmation signals needed before adding risk tomorrow.
Key Takeaways
  • Bull 4% surged to 205 vs 60 bear, a sharp reversal
  • Only 8% above 20-SMA — bounce is narrow and stretched
  • Energy and Staples lead; Tech and Industrials lag hard
  • OIH and SPOT are cleanest continuation entries into close
  • Index price data unavailable — trade internals, size small
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Regime Check — Where Are We Now?

Regime has flipped decisively bullish on the tape since yesterday — the 4% breadth signal reads Bullish, though the 40-SMA gauge remains Neutral. Note: SPY, QQQ and IWM price/SMA data are unavailable today, so we lean entirely on internals.

  • Breadth thrust up, but narrow: Bull 4% surged to 205 vs just 60 Bear 4% today — a massive reversal from yesterday’s ugly 104 bull / 334 bear split.
  • Short-term stretched, medium-term firming: % Above 20-SMA collapsed to 8% (from 17%, -9pp), while % Above 40-SMA ticked up to 43.26% (from 42.74%, +0.5pp) — a healing-under-the-surface tell.
  • Character: This looks like a reversal/rotation day — defensive and energy leadership dominating while the former growth engine idles.

Strategy Signals — Continuation, Reversal & SIP

  • Strongest continuation (2LYNCH): SPOT $560.65 (+3.0%) leads on RVOL 0.6, with APP $318.39 (+2.1%) and DKS $136.73 (+2.8%) extending — though light RVOL (0.5) means conviction is thin. OIH $436.95 (+2.4%, RVOL 1.1) is the cleanest volume-backed name.
  • Strongest reversal setup: HPE $51.34 (+0.9%, RVOL 2.1) is turning up on real volume; watch PCG $13.27 — down 5.6% on RVOL 2.4, a knife still falling amid its strategic-review headline.
  • SIP leaders: UTHR $512.70 holds firm on FDA acceptance of the Tyvaso IPF indication (positive), and ASTS $55.80 got a fresh Buy initiation but faded -2.28% from open — momentum not confirming. EIX $58.79 got a JP Morgan target cut yet ran +8.83% off the open.
  • Most relevant action code: PLASTICS (Sector Winners) — Energy (RSPG 3.75, 95th pctile) and Consumer Staples (RSPS 1.47, 100th pctile) are where the strength lives; fade the laggards.

Closing Playbook — What To Do Now

  • CLOSE / trim: Exit weak Utilities and Industrials exposure — RSPU sits at -2.3 and RSPN at -1.79 (0th percentile), both falling. Any bounce into the bell is a selling opportunity, not a buy. Cut PCG longs if you’re holding into that -5.6% flush.
  • ENTER on confirmation: If OIH holds above $436 into the close on rising volume, it’s the highest-quality continuation with RVOL 1.1 backing the move. SPOT above $560 is your growth-side FFM candidate if it closes near highs.
  • Key level: SPY level data is unavailable — so anchor to internals instead: if % Above 20-SMA can stabilize off today’s 8% into tomorrow while Bull 4% stays north of Bear 4%, that confirms the reversal has legs. A relapse below yesterday’s bearish readings kills it.

Tomorrow’s Early Look

  • Catalyst watch: Energy is the tell — RSPG at the 95th percentile means crude/OIH follow-through drives the open. Keep an eye on any overnight energy or rate headlines given the defensive Staples bid.
  • Setup forming: OIH above $436.95 is the cleanest carry-over; secondary, UTHR above $512 on its FDA catalyst if it holds the gap.
  • Regime outlook: Today’s breadth flip is encouraging but narrow (8% above 20-SMA is oversold-stretched). Trade small, favor leaders over broad beta, and demand volume confirmation — one bullish breadth day doesn’t erase yesterday’s 334 Bear 4% damage.
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