Daily Pre-Market Brief

Neutral-Down — XLE leads the SPDR 11 — SPY trend Normal — 1 big mover — 3 squeeze setups building

July 21, 2026 · Auto-generated from quantitative models

Educational commentary — not investment advice. See full disclaimer.

Market Conditions are **Neutral-Down** (score 55.0/100) — main risks: distribution red, trend amber. Underlying SPY trend is Normal with MEI at 61.4/100 (MODERATE GROWTH) and sentiment reading NEUTRAL. Energy (XLE) leads at #1 with a Improving signal and score 70.1, while Materials (XLB) trails at #11. 1 sector moved 3+ ranks today.

Market Conditions

Neutral-Down55/100

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?

NEUTRAL

49/100

Macro Economic Indicator?

MODERATE GROWTH

61.4/100

Economic Regime?

Recession

US Sector Rotation (SPDR 11)

Rank	Δ	Sector	Signal	Quadrant	Score
1	→	XLEEnergy	Improving	Leading	70
2	→	XLREReal Estate	Improving	Leading	56
3	↑8	XLKTechnology	Weak	Improving	55
4	↑1	XLFFinancials	Weak	Weakening	54
5	↓2	XLPStaples	Weak	Lagging	49
6	↓2	XLCCommunications	Weak	Improving	48
7	↓1	XLUUtilities	Weak	Lagging	44
8	↑1	XLIIndustrials	Weak	Lagging	44
9	↓2	XLVHealthcare	Weak	Weakening	44
10	↓2	XLYDiscretionary	Weak	Lagging	43
11	↓1	XLBMaterials	Weak	Lagging	40

Notable Changes

⚡XLK (Technology) climbed 8 ranks to #3

⚡XLP in TTM Squeeze (12 bars) — watch for breakout

⚡XLI in TTM Squeeze (6 bars) — watch for breakout

⚡XLY in TTM Squeeze (16 bars) — watch for breakout

What to Watch

Sectors near a signal threshold or with elevated seasonal tailwinds.

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

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.

XLK, XLY, XLB

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