Yesterday's split reversed: the index rose while breadth weakened. There was a small improvement in advancing trends, enough to soften our recent erosion story but not enough to change the market's Neutral — Fading posture. Tomorrow still looks like a session for selective screening rather than a broader search for action.
Less erosion, little confirmation
Stage 2 participation edged up from yesterday's six-week low of 28.5%. Over the last five sessions, 15 stocks moved from basing to advancing while 99 moved from advancing to topping. That is a narrower deficit, but trend losses still outweigh replenishment. Decliners also outnumbered advancers today. The index rebound does not yet have broad support.
Technology bounces, staples lose their footing
Technology's rebound came with a slight rise in Stage 2 participation to 41.1%. Semiconductors tell a less encouraging story: prices rose 3.3%, but advancing participation slipped to 31.5% from 32.1% yesterday. Keep that distinction in tomorrow's chart review. Yesterday's staples strength also failed to carry through, with the sector finishing last today. Grocery stores fell 3%, although their Stage 2 share held at 44.4%. The retail pocket remains worth tracking, but today's selling weakens the case for treating it as shelter.
Keep the watchlist selective
Healthcare plans offered steadier confirmation, rising 1.6% while retaining 60% advancing participation. Energy's reversal continued with a 0.6% decline, though it still leads sector relative strength. There are no established setups or pullback setups tonight, and no sizable Stage 2 entries or exits to highlight. Leave room on the watchlist rather than filling it with rebound charts that have not rebuilt advancing trends.
| Sector | 1D | 1M | 3M | RS | Stage 2 |
|---|---|---|---|---|---|
| Information Technology | +1.2% | -6.2% | -4.2% | 61 | 41% |
| Health Care | +1.1% | +0.5% | +3.1% | 66 | 37% |
| Industrials | +0.7% | +2.2% | -5.1% | 63 | 20% |
| Communication Services | +0.6% | +2.0% | -2.2% | 55 | 27% |
| Utilities | -0.3% | +4.1% | -3.2% | 55 | 12% |
| Financials | -0.5% | +1.0% | -2.3% | 66 | 24% |
| Energy | -0.6% | -2.1% | +4.8% | 75 | 53% |
| Real Estate | -0.7% | +3.0% | -7.2% | 59 | 11% |
| Materials | -0.9% | -6.6% | -9.4% | 63 | 20% |
| Consumer Discretionary | -1.3% | +6.9% | -3.9% | 59 | 21% |
| Consumer Staples | -1.4% | +4.3% | -3.4% | 58 | 28% |
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.