Yesterday's selloff gave way to a small bounce, with little repair underneath. The market remains Neutral — Fading. Participation above the 50-day average edged up to 47.9%, but the five-session transition deficit widened from 98 to 110. This still favors selective chart review over broadening the search for new exposure.
Technology's rebound loses more trends
The established trends need individual scrutiny. Apple remains in Stage 2 and sits 1.9% above its 50-day average. Taiwan Semiconductor Manufacturing also retains that classification, despite sitting 13% below its average with a setup score of 2.4. An established label alone does not make a clean setup.
The technology damage we followed yesterday deepened beneath today's rebound. NVIDIA and Marvell Technology moved from advancing into topping. Snowflake also left Stage 2. Those classification changes matter more for an existing holding review than the sector's green close.
Defensive strength splits
Healthcare plans improved from 70% to 80% advancing participation, with UnitedHealth Group returning to Stage 2. That extends the pocket of strength we have been following even though the industry slipped 0.3% today.
Staples reversed yesterday's relative resilience and finished last among sectors. Yet grocery and discount stores both retained 44.4% advancing participation. Their price weakness has not yet become a loss of those trends.
Energy's erosion continued: advancing participation slipped from 50.3% to 48.3%, and MPLX left Stage 2. Its sector-leading relative strength still needs that qualification.
Keep the next screen selective
Johnson & Johnson remains an established health care chart to review, sitting 3.9% above its 50-day average after a 15-month uptrend. Start with established survivors and check their current condition before treating a rebound as renewed strength. For existing holdings, tonight's departures from Stage 2 deserve attention before adding more names to the watchlist.
| Stock | Sector | Setup | % 1D |
|---|---|---|---|
| Apple | Information Technology | 6.5 | -0.5% |
| Taiwan Semiconductor Manufacturing | Information Technology | 2.4 | +6.3% |
| Eli Lilly | Health Care | 7.8 | -0.8% |
| ExxonMobil Holdings | Energy | 6.7 | +0.3% |
| Johnson & Johnson | Health Care | 7.3 | +1.4% |
| Chevron | Energy | 7.9 | -0.2% |
| Coca-Cola | Consumer Staples | 8.4 | -0.1% |
| Merck | Health Care | 5.6 | -0.1% |
| Sector | 1D | 1M | 3M | RS | Stage 2 |
|---|---|---|---|---|---|
| Industrials | +2.3% | -3.7% | -7.9% | 63 | 20% |
| Information Technology | +1.9% | -12.2% | -6.9% | 64 | 37% |
| Materials | +0.7% | -0.1% | -5.4% | 74 | 13% |
| Communication Services | +0.7% | -13.3% | -13.0% | 52 | 22% |
| Health Care | +0.2% | +10.1% | +11.4% | 75 | 37% |
| Consumer Discretionary | +0.2% | +4.9% | -1.9% | 54 | 22% |
| Energy | -0.2% | -5.0% | +1.5% | 82 | 48% |
| Utilities | -0.2% | +5.6% | +1.3% | 57 | 17% |
| Real Estate | -0.5% | +7.6% | -0.2% | 65 | 13% |
| Financials | -0.5% | +4.5% | -1.0% | 66 | 25% |
| Consumer Staples | -1.3% | +9.1% | +8.3% | 71 | 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.