Daily Pre-Market Brief

Neutral-Down — XLV leads the SPDR 11 — SPY trend Normal — 4 big movers — 1 squeeze setup building

July 8, 2026 · Auto-generated from quantitative models

Educational commentary — not investment advice. See full disclaimer.

Market Conditions are **Neutral-Down** (score 42.5/100) — main risks: distribution red, macro regime red. Underlying SPY trend is Normal with MEI at 60.1/100 (MODERATE GROWTH) and sentiment reading NEUTRAL. Healthcare (XLV) leads at #1 with a Strong signal and score 72.3, while Technology (XLK) trails at #11. 4 sectors moved 3+ ranks today.

Market Conditions

Neutral-Down42.5/100

Cautious — half size, defensive tilt

Trend

Breadth

Distribution

Volatility

Credit

Internals

Macro Regime

Main risks: Distribution (red) • Macro Regime (red)

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?

NEUTRAL

48.8/100

Macro Economic Indicator?

MODERATE GROWTH

60.1/100

Economic Regime?

Recession

US Sector Rotation (SPDR 11)

Rank	Δ	Sector	Signal	Quadrant	Score
1	→	XLVHealthcare	Strong	Leading	72
2	→	XLFFinancials	Weak	Weakening	58
3	↑5	XLIIndustrials	Weak	Weakening	54
4	↑5	XLEEnergy	Weak	Improving	54
5	→	XLCCommunications	Weak	Improving	53
6	↓2	XLUUtilities	Weak	Weakening	52
7	→	XLYDiscretionary	Weak	Improving	52
8	↓5	XLPStaples	Weak	Weakening	50
9	↓3	XLREReal Estate	Weak	Lagging	45
10	→	XLBMaterials	Weak	Lagging	42
11	→	XLKTechnology	Weak	Lagging	42

Notable Changes

⚡XLI (Industrials) climbed 5 ranks to #3

⚡XLE (Energy) climbed 5 ranks to #4

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

⚡XLP (Staples) dropped 5 ranks to #8

⚡XLRE (Real Estate) dropped 3 ranks to #9

What to Watch

Sectors near a signal threshold or with elevated seasonal tailwinds.

›XLV — seasonal score bullish (88/100)
›XLF — seasonal score bullish (89/100)
›XLI — seasonal score bullish (90/100)
›XLC — seasonal score bullish (87/100)
›XLU — seasonal score bullish (86/100)
›XLY — seasonal score bullish (87/100)
›XLP — seasonal score bullish (84/100)
›XLRE — seasonal score bullish (90/100)
›XLB — seasonal score bullish (76/100)
›XLK — seasonal score bullish (92/100)

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.

XLC, XLY

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