Yesterday's breadth pause ended decisively, even as advancing trends kept thinning. The market remains Neutral — Fading. Tomorrow's screening deserves a wider search beyond technology, but the improvement in breadth is still ahead of confirmation from Stage 2.
A stronger market beneath a weaker index
Participation above the 50-day average jumped from 46.4% to 52.5%. Net new 52-week highs reached 370, a six-week high. That gives the breadth recovery we have been following fresh support.
The unresolved problem is replenishment. Over the last five sessions, 20 stocks moved from basing into advancing trends, while 123 moved from advancing into topping. Keep building the watchlist, but distinguish a stock reclaiming an average from an established advancing trend.
Health care earns more attention
Health care tied real estate for the day's lead, but their advancing participation differs sharply: 38.4% versus 9.9%. Within health care, healthcare plans have gained 30 percentage points of Stage 2 participation over 20 sessions. Option Care Health entered Stage 2 from a base tonight.
Yesterday's technology rally reversed, with the sector down 0.9%; its monthly Stage 2 rebuild remains positive but smaller. Energy's participation edged back up to 56.2% from 56%, easing the erosion we flagged without erasing it.
Financials still slipped to 23.9% advancing participation despite a positive session. S&P Global returned to Stage 2, and financial data and stock exchanges offer a distinct pocket of improvement within that weak sector.
Tomorrow's chart review
Start with the early advancing names rather than the trends that have already run furthest. Funko leads that list with an 8.3 setup score, followed by BJ's Wholesale Club Holdings at 8. ResMed follows at 7.9 and sits 9.1% above its own 50-day average, giving the health care rotation a specific chart to examine.
Review departures as well. Amazon.com moved from advancing into topping tonight. Shinhan Financial Group and BioNTech also left Stage 2. Those changes matter to an existing watchlist even on a session with improving breadth.
| Stock | Sector | Setup | % 1D |
|---|---|---|---|
| Funko | Consumer Discretionary | 8.3 | +1.5% |
| BJ's Wholesale Club Holdings | Consumer Staples | 8.0 | +1.9% |
| ResMed | Health Care | 7.9 | +1.1% |
| Republic Services | Industrials | 7.8 | +1.2% |
| American Tower Corporation (REIT) | Real Estate | 7.8 | +1.2% |
| Cardinal Health | Health Care | 7.8 | +2.6% |
| National Beverage | Consumer Staples | 7.8 | +2.2% |
| Progressive | Financials | 7.8 | +2.0% |
| Sector | 1D | 1M | 3M | RS | Stage 2 |
|---|---|---|---|---|---|
| Real Estate | +2.2% | +4.9% | -3.9% | 62 | 10% |
| Health Care | +2.2% | +8.6% | +15.1% | 73 | 38% |
| Utilities | +1.5% | +8.8% | -1.5% | 56 | 11% |
| Consumer Staples | +1.4% | +10.3% | +5.1% | 67 | 28% |
| Financials | +1.3% | +4.8% | -0.1% | 65 | 24% |
| Industrials | +1.0% | +1.6% | +4.0% | 65 | 20% |
| Energy | +0.7% | +11.2% | +13.4% | 86 | 56% |
| Consumer Discretionary | +0.0% | +5.4% | +0.6% | 53 | 20% |
| Materials | -0.6% | -0.1% | +3.5% | 70 | 29% |
| Information Technology | -0.9% | -2.2% | +9.8% | 69 | 41% |
| Communication Services | -7.6% | -13.8% | -12.2% | 54 | 29% |
Work the same data yourself: open the full stock screener, see where money is moving on the sector rotation page, or check the market-timing read. New to the method? Start with the four stages.
Stage2Stocks is an educational stage-analysis screener. These wraps describe what the screen shows across US-listed stocks. They are not investment advice, recommendations, or buy/sell calls. Always do your own research.