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AI-generated

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

July 16, 2026 · Auto-generated from quantitative models

Educational commentary — not investment advice. See full disclaimer.

Market Conditions are **Neutral-Down** (score 50.0/100) — main risks: distribution red, internals red. Underlying SPY trend is Normal with MEI at 61.5/100 (MODERATE GROWTH) and sentiment reading NEUTRAL. Energy (XLE) leads at #1 with a Weak signal and score 65.9, while Technology (XLK) trails at #11.

Market Conditions

Neutral-Down50/100

Cautious — half size, defensive tilt

Trend
Breadth
Distribution
Volatility
Credit
Internals
Macro Regime

Main risks: Distribution (red) • Internals (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

49.8/100

Macro Economic Indicator?

MODERATE GROWTH

61.5/100

Economic Regime?

Recession

US Sector Rotation (SPDR 11)

RankΔSectorSignalQuadrantScore
12XLEWeakLeading66
21XLFStableLeading64
31XLCWeakLeading62
41XLPStableLeading61
51XLREStableLeading61
62XLVWeakWeakening56
71XLUWeakLeading53
81XLYWeakLagging48
9XLBWeakLagging47
10XLIWeakWeakening43
11XLKWeakLagging37

Notable Changes

XLP in TTM Squeeze (9 bars) — watch for breakout
XLRE in TTM Squeeze (10 bars) — watch for breakout
XLY in TTM Squeeze (13 bars) — watch for breakout
XLK in TTM Squeeze (9 bars) — watch for breakout

What to Watch

Sectors near a signal threshold or with elevated seasonal tailwinds.

  • XLF — seasonal score bullish (89/100)
  • XLC — seasonal score bullish (91/100)
  • XLP — seasonal score bullish (85/100)
  • XLRE — seasonal score bullish (88/100)
  • XLV — seasonal score bullish (86/100)
  • XLU — seasonal score bullish (85/100)
  • XLY — seasonal score bullish (83/100)
  • XLB — seasonal score bullish (73/100)
  • XLI — seasonal score bullish (86/100)
  • XLK — seasonal score bullish (90/100)

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

Want the full picture?

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