Yesterday's narrow rebound broadened decisively today. That changes the watchlist work, but the market remains Neutral — Fading. More stocks are recovering their moving averages while fewer qualify as established advancing trends. Tomorrow's screening can widen without relaxing the requirement for an intact trend.
Breadth confirms the rally, trends do not
Participation above the 50-day average jumped from 50.3% to 57.4%. The surplus of 52-week highs over lows reached 459, also a six-week high. Yesterday's tentative stabilization in Stage 2 did not hold. Over the last five sessions, 17 stocks moved from basing to advancing while 103 moved from advancing to topping. That imbalance still argues for selective chart review rather than treating a broad rally as broad trend repair.
Energy's leadership takes another hit
The energy deterioration we have followed since last week accelerated. Advancing participation fell from 53.4% to 51.4%, even though energy still leads sectors in relative strength. Energy Transfer moved from Stage 2 into Stage 3 topping. That deserves a fresh review for anyone already tracking it. Technology also missed much of the rally, gaining just 0.3%, and Arista Networks left Stage 2.
Keep the search focused within sectors
Healthcare plans expanded from 60% to 70% advancing participation. Financial exchanges improved from 72.7% to 81.8%, even as financials overall slipped to 23.6%. The sector's strong price rebound has not repaired its broad trend weakness. Staples reversed yesterday's price loss, with grocery and discount stores each gaining 3.5% while retaining their advancing participation.
For established-trend chart review, Apple remains 4.4% above its 50-day average. Johnson & Johnson is 4.1% above its own average, while Coca-Cola is 7% above. These are starting points for screening, not automatic signals. Among tonight's new Stage 2 entries, Colgate-Palmolive adds confirmation in staples, while MSCI and Tradeweb Markets reinforce the financial pocket outside banks.
| Stock | Sector | Setup | % 1D |
|---|---|---|---|
| Apple | Information Technology | 6.0 | +5.3% |
| NVIDIA | Information Technology | 3.5 | -3.2% |
| Taiwan Semiconductor Manufacturing | Information Technology | 4.0 | -2.2% |
| Advanced Micro Devices | Information Technology | 3.9 | +1.0% |
| ExxonMobil Holdings | Energy | 7.9 | -4.6% |
| Johnson & Johnson | Health Care | 6.5 | +3.8% |
| Chevron | Energy | 7.9 | -3.7% |
| Coca-Cola | Consumer Staples | 8.4 | +1.1% |
| Sector | 1D | 1M | 3M | RS | Stage 2 |
|---|---|---|---|---|---|
| Materials | +4.1% | -0.2% | -0.9% | 72 | 18% |
| Consumer Discretionary | +4.1% | +7.8% | +3.2% | 53 | 20% |
| Financials | +3.6% | +7.6% | +2.1% | 67 | 24% |
| Health Care | +3.3% | +13.4% | +17.8% | 75 | 37% |
| Consumer Staples | +3.2% | +13.8% | +10.1% | 71 | 28% |
| Real Estate | +3.2% | +9.3% | +1.2% | 64 | 12% |
| Communication Services | +3.1% | -12.3% | -11.5% | 51 | 27% |
| Utilities | +0.8% | +6.8% | +1.6% | 56 | 17% |
| Information Technology | +0.3% | -9.0% | -1.1% | 64 | 40% |
| Industrials | -1.5% | -3.1% | -1.3% | 63 | 21% |
| Energy | -4.5% | -0.6% | +7.1% | 81 | 51% |
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.