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With the market back above key levels, we're seeing early signs of rotation, particularly into tech. 

Among the tech subsectors, cybersecurity is emerging as a standout, showing strong potential to lead the next phase of growth.

This group has been carving out a massive bottoming formation relative to the S&P 500 for over two years.

We've seen multiple failed attempts at the top of the range — but now we're back at those former highs, and this thing looks ready to go.

This is what a bearish-to-bullish reversal looks like.

If this base completes and this breakout holds, then it will mark the...

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The relentless bid for international equities continues to stand out—and it’s getting harder to ignore.

Outside the U.S., we’re seeing a textbook V-bottom in progress. Stocks around the world are recovering fast and fierce, with many regions snapping back toward new highs.

Just look at the iShares MSCI EAFE ETF $EFA. It erased all its March and April losses in no time. 

After briefly undercutting last year’s lows, EFA shook out the weak hands, trapped the bears, and ripped right back above the upper bounds of the range.

These shakeouts that lead to breakouts are some of the most bullish setups out there. 

The stock market just closed higher for 9 straight sessions.

We’re seeing a textbook V-shaped recovery unfold, especially with major indexes and sectors reclaiming key levels and repairing the damage from last month’s selloff.

When we look under the surface, the more speculative, high-beta areas of the market are starting to wake up and look ready to catch higher.

We call that risk appetite. And that’s exactly what our custom speculative growth index was designed to track. 

After a sharp pullback, the riskiest stocks in the market are bouncing right where they should.

Former resistance has turned into support. It’s the polarity principle at its finest. 

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Small-caps are back on my radar this week as they try to reclaim leadership versus large-caps.

While they’re the smallest stocks in the market—when they move, they carry real information.

Think of small-caps as a proxy for market breadth—they represent a wide swath of the market, from regional banks to biotechs, industrials, and other other smaller players across the board.

When you look at every major market bottom this century, it has been followed by small-caps stepping up and leading the way at the start of a new leg higher—at least for a time.

That’s not a coincidence. It’s a clear signal of the underlying health and breadth needed for a rally to gain traction, reflecting broad market participation beyond the large-cap giants.

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Just a few weeks ago, Tech looked like dead weight — it was the main culprit behind the recent market correction and was on the verge of completing a massive top.

But fast forward to today, and the picture looks very different.

Price briefly broke below a critical support zone, only to snap back with force as buyers stepped in exactly where they needed to — trapping the bears and flipping the narrative.

Now, XLK has reclaimed the VWAP anchored to the all-time highs.

That’s the equivalent key level that the major indexes are fighting with right now...

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For years, Momentum was basically code for US growth, big tech and high-flyers. But 2025 is rewriting that script.

This year has been all about international equities.

While US indexes have chopped sideways, many global ETFs are quietly making new 52-week highs relative to the S&P 500.

The Intl Momentum Factor ETF $IMTM tells the story of what's been unfolding in abroad and where the strength is emerging.

The ETF is breaking out to new all-time highs, driven by Financials and Industrials, which make up 34% and 18% of the...

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While markets have been volatile over the past few weeks, these turbulent periods often present the best opportunities to identify future leaders.

When the market’s under pressure, I’m always looking for the names that refuse to go down.

That’s what relative strength looks like.

It’s called the Beachball Effect.

Picture a beachball underwater — no matter how hard you push it down, it just keeps fighting to pop back up.

And when the pressure lifts, these are the names that tend to rip first — and rip the hardest.

To help visualize this, we built a table combining two factors:

🔹Stocks currently in a bullish momentum regime...

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One of the most powerful and reliable signals in market history just triggered today: the Zweig Breadth Thrust.

This indicator is known for its unique ability to spot the start of major bull moves by combining breadth and momentum — showing not just how many stocks are participating, but also how quickly the shift happens.

Here’s how it works:

🔹The setup begins with the 10-day exponential moving average of advancing issues divided by advancing + declining issues on the NYSE falling below 0.40.
 
🔹Then, within 10 trading days, that same reading must surge above 0.615.

When you see this kind of rapid transition — from washed-out breadth to upside participation — it signals a violent shift in market internals.

And it just triggered....

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The market feels like a rollercoaster these days — volatile, messy, just trying to find its footing.

Headline-driven rallies and big swings in both directions is now the norm, and there’s no sign this will stop any time soon.

But things are getting interesting as major levels in the S&P 500 $SPY are coming back into play. 

The bulls came out this week. Let’s zoom in.

We’ve got the VWAP from the all-time highs and the VWAP from the April lows converging into a tight range. This is what our friend Brian Shannon calls a “VWAP pinch.”

This kind of compression often signals a buildup of...

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The relative strength in Bitcoin over the past two months has been off the charts.

In a tough tape, I would’ve expected BTC to be the first to roll over and lead risk assets lower. 

But that didn’t happen. If anything, it held up better than ever. 

It’s the first time BTC has shown this kind of strength under any kind of selling pressure environment.

And now that the worst is behind us, Bitcoin is back into rally mode.

Today, price reclaimed the neckline from a major topping pattern, right around $90K.

That’s been the key level to watch for months.

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US equities remain under pressure as the major indexes break below key VWAPs anchored to their lows.

Meanwhile, critical polarity levels are serving as stiff resistance across key sectors and industry groups, capping last week’s bounce.

Whether it’s Semiconductors, Financials, or Software, buyers continue to struggle in reclaiming the broken support levels from earlier this month.

The SPDR Financial Sector $XLF is a textbook example of this theme. 

After briefly pushing back above the neckline of this top, XLF is now getting rejected right around 48.

That means an increasing supply is overwhelming the buyers near those prices.

Sellers are defending critical levels with...

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Volatility is still running hot, and wild swings in both directions are probably here to stay for longer.

Even though I think the worst is behind us, things still look soft.

There’s little to suggest this choppy, risk-off environment is fading just yet.

One thing that’s helped me big time this year is tracking risk appetite through key ratios.

These relationships show us how money is rotating and where investors are actually putting capital...