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AI-generated

Favorable — XLY leads the SPDR 11 — SPY trend Normal — 2 big movers — 1 squeeze setup building

August 6, 2026 · Auto-generated from quantitative models

Educational commentary — not investment advice. See full disclaimer.

Market Conditions are **Favorable** (score 80.0/100) — main risks: distribution red, internals amber. Underlying SPY trend is Normal with MEI at 64.7/100 (MODERATE GROWTH) and sentiment reading NEUTRAL. Discretionary (XLY) leads at #1 with a Weak signal and score 65.2, while Utilities (XLU) trails at #11. 2 sectors moved 3+ ranks today.

Market Conditions

Favorable80/100

Favorable — full size

Trend
Breadth
Distribution
Volatility
Credit
Internals
Macro Regime

Main risks: Distribution (red) • Internals (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

55.4/100

Macro Economic Indicator?

MODERATE GROWTH

64.7/100

Economic Regime?

Recovery

US Sector Rotation (SPDR 11)

RankΔSectorSignalQuadrantScore
11XLYWeakImproving65
21XLKWeakImproving57
34XLCWeakImproving55
41XLBWeakLagging50
51XLFWeakWeakening48
63XLIWeakLagging43
71XLPWeakLagging41
82XLVWeakLagging41
91XLEWeakWeakening37
101XLREWeakLagging34
11XLUWeakLagging27

Notable Changes

XLC (Communications) climbed 4 ranks to #3
XLI (Industrials) dropped 3 ranks to #6
XLP in TTM Squeeze (6 bars) — watch for breakout

Action Items

Economic Regime Favours

Sectors historically outperforming in this phase of the business cycle.

XLV, XLP, XLU

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