Daily Pre-Market Brief

Neutral-Down — XLE leads the SPDR 11 — SPY trend Normal — 4 big movers — 3 squeeze setups building

July 23, 2026 · Auto-generated from quantitative models

Educational commentary — not investment advice. See full disclaimer.

Market Conditions are **Neutral-Down** (score 57.5/100) — main risks: distribution red, trend amber. Underlying SPY trend is Normal with MEI at 63.5/100 (MODERATE GROWTH) and sentiment reading RISK-OFF. Energy (XLE) leads at #1 with a Stable signal and score 73.9, while Discretionary (XLY) trails at #11. 4 sectors moved 3+ ranks today.

Market Conditions

Neutral-Down57.5/100

Cautious — half size, defensive tilt

Trend

Breadth

Distribution

Volatility

Credit

Internals

Macro Regime

Main risks: Distribution (red) • Trend (amber)

Synthesised from trend, breadth, distribution, volatility, credit, internals, and macro inputs. See the Market Conditions tab for full detail on each light.

US Market Indicators

All indicators are based on US equity markets and economic data.

SPY Sentiment?

RISK-OFF

39.2/100

Macro Economic Indicator?

MODERATE GROWTH

63.5/100

Economic Regime?

Recovery

US Sector Rotation (SPDR 11)

Rank	Δ	Sector	Signal	Quadrant	Score
1	→	XLEEnergy	Stable	Leading	74
2	↑2	XLUUtilities	Improving	Leading	68
3	→	XLREReal Estate	Stable	Leading	65
4	↓2	XLFFinancials	Stable	Leading	62
5	↑4	XLIIndustrials	Stable	Leading	60
6	→	XLPStaples	Improving	Leading	58
7	↑3	XLVHealthcare	Weak	Weakening	58
8	↓3	XLBMaterials	Weak	Improving	56
9	↓1	XLKTechnology	Weak	Lagging	46
10	↓3	XLCCommunications	Weak	Lagging	39
11	→	XLYDiscretionary	Weak	Lagging	29

Notable Changes

⚡XLI (Industrials) climbed 4 ranks to #5

⚡XLI in TTM Squeeze (8 bars) — watch for breakout

⚡XLP in TTM Squeeze (14 bars) — watch for breakout

⚡XLV (Healthcare) climbed 3 ranks to #7

⚡XLB (Materials) dropped 3 ranks to #8

⚡XLB in TTM Squeeze (7 bars) — watch for breakout

⚡XLC (Communications) dropped 3 ranks to #10

What to Watch

Sectors near a signal threshold or with elevated seasonal tailwinds.

›XLU (Utilities) — score 68, approaching Strong threshold (70)
›XLU — seasonal score bullish (85/100)
›XLRE (Real Estate) — score 65, approaching Strong threshold (70)
›XLRE — seasonal score bullish (88/100)
›XLF — seasonal score bullish (89/100)
›XLI — seasonal score bullish (86/100)
›XLP — seasonal score bullish (85/100)
›XLV — seasonal score bullish (86/100)
›XLB — seasonal score bullish (73/100)
›XLK — seasonal score bullish (90/100)
›XLC — seasonal score bullish (91/100)
›XLY — seasonal score bullish (83/100)

Action Items

Economic Regime Favours

Sectors historically outperforming in this phase of the business cycle.

XLV, XLP, XLU

Caution — Persistent Weakness

Sectors with an Avoid signal or in Weinstein Stage 4 (confirmed downtrend), excluding sectors currently favored by the economic regime.

XLB, XLK, XLC, XLY

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