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AI-generated

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

August 17, 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 60.4/100 (MODERATE GROWTH) and sentiment reading NEUTRAL. Technology (XLK) leads at #1 with a Improving signal and score 73.4, while Utilities (XLU) trails at #11. 2 sectors moved 3+ ranks today.

Market Conditions

Favorable80/100

Favorable — broad, healthy backdrop

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

61.5/100

Macro Economic Indicator?

MODERATE GROWTH

60.4/100

Economic Regime?

Expansion

US Sector Rotation (SPDR 11)

RankΔSectorSignalQuadrantScore
1XLKImprovingLeading73
2XLEStableLeading70
33XLVWeakWeakening58
41XLBWeakImproving52
5XLIWeakLagging52
61XLFWeakLagging49
73XLCWeakLagging44
81XLPWeakLagging44
91XLYWeakLagging41
10XLREWeakLagging41
11XLUAvoidLagging37

Notable Changes

XLV (Healthcare) climbed 3 ranks to #3
XLC (Communications) dropped 3 ranks to #7
XLP in TTM Squeeze (13 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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