Friday's bounce offered little repair. Today's did: participation broadened sharply, and advancing trends stopped shrinking for the day. The market remains Neutral — Fading, though. This is a better backdrop for refreshing watchlists, without enough trend repair to relax screening standards.
A broader rebound, with limits
The five session deficit between moves from basing into advancing trends and moves from advancing into topping narrowed from 110 to 92. It remains negative, as it has for 30 sessions. Industrials led today's sector gains at 4.4%, but only 19.3% of the sector is in Stage 2. Strong price recovery still exceeds established trend participation.
Technology's warning survives the rally
The deterioration we followed Friday continued beneath higher prices. Technology's Stage 2 share slipped from 36.9% to 36.5%. Palo Alto Networks and Dell Technologies moved from advancing into topping tonight, making them review priorities for existing watchlists or holdings. Energy's relative leadership also remains qualified: its Stage 2 share slipped to 47.8%, even as it retained the strongest sector relative strength score.
Keep the review selective
Health care's rotation has more substance. Healthcare plans held 80% Stage 2 participation, while HCA Healthcare and Edwards Lifesciences entered advancing trends. For established trend review, Apple is 4.2% above its 50 day average; Johnson & Johnson is 6% above. Coca-Cola and Merck also remain established candidates for chart review. Retaining Stage 2 alone is insufficient: Taiwan Semiconductor Manufacturing and Advanced Micro Devices remain below their 50 day averages. Those distinctions matter more tomorrow than the size of today's rebound.
| Stock | Sector | Setup | % 1D |
|---|---|---|---|
| Apple | Information Technology | 6.5 | +2.4% |
| Taiwan Semiconductor Manufacturing | Information Technology | 2.4 | +3.5% |
| Advanced Micro Devices | Information Technology | 3.4 | +13.3% |
| Johnson & Johnson | Health Care | 7.3 | +2.1% |
| ExxonMobil Holdings | Energy | 5.7 | -0.7% |
| Coca-Cola | Consumer Staples | 8.4 | +0.4% |
| Chevron | Energy | 6.5 | -0.9% |
| Merck | Health Care | 6.6 | +1.4% |
| Sector | 1D | 1M | 3M | RS | Stage 2 |
|---|---|---|---|---|---|
| Industrials | +4.4% | -0.4% | -3.7% | 63 | 19% |
| Materials | +3.5% | +1.9% | -2.1% | 73 | 12% |
| Information Technology | +3.4% | -10.1% | -4.2% | 65 | 36% |
| Consumer Discretionary | +2.7% | +6.0% | +1.4% | 54 | 23% |
| Health Care | +2.1% | +10.8% | +14.4% | 73 | 38% |
| Communication Services | +1.8% | -11.6% | -9.1% | 51 | 23% |
| Financials | +1.7% | +5.4% | +0.7% | 64 | 25% |
| Utilities | +1.7% | +6.2% | +1.4% | 54 | 17% |
| Real Estate | +1.6% | +7.7% | +2.2% | 63 | 14% |
| Consumer Staples | +0.7% | +9.7% | +9.4% | 69 | 30% |
| Energy | +0.4% | -4.7% | +1.0% | 79 | 48% |
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.