Daily Pre-Market Brief

Neutral-Up: XLV leads the SPDR 11: SPY trend Normal: 2 big movers: 1 squeeze setup building

August 26, 2026 · Data through the US close · Auto-generated from quantitative models

Educational commentary, not investment advice. See full disclaimer.

Market Conditions are **Neutral-Up** (score 62.5/100): main risks: distribution red, internals red. Underlying SPY trend is Normal with MEI at 59.7/100 (SLOWDOWN) and sentiment reading NEUTRAL. Healthcare (XLV) leads at #1 with a Strong signal and score 70.9, while Industrials (XLI) trails at #11. 2 sectors moved 3+ ranks today.

Market Conditions

Neutral-Up62.5/100

Constructive: conditions improving

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

57.9/100

Macro Economic Indicator?

SLOWDOWN

59.7/100

Economic Regime?

Expansion

US Sector Rotation (SPDR 11)

Rank	Δ	Sector	Signal	Quadrant	Score
1	→	XLVHealthcare	Strong	Leading	71
2	↑3	XLBMaterials	Stable	Leading	68
3	↑1	XLEEnergy	Stable	Leading	66
4	↓1	XLPStaples	Improving	Leading	62
5	↓3	XLREReal Estate	Weak	Improving	62
6	→	XLCCommunications	Improving	Leading	62
7	→	XLFFinancials	Improving	Leading	59
8	→	XLYDiscretionary	Weak	Improving	53
9	↑1	XLUUtilities	Weak	Improving	52
10	↓1	XLKTechnology	Weak	Lagging	48
11	→	XLIIndustrials	Weak	Lagging	46

Notable Changes

⚡XLB (Materials) climbed 3 ranks to #2

⚡XLP in TTM Squeeze (20 bars): watch for breakout

⚡XLRE (Real Estate) dropped 3 ranks to #5

What to Watch

Sectors near a signal threshold or with elevated seasonal tailwinds.

›XLB (Materials): score 68, approaching Strong threshold (70)
›XLE (Energy): score 66, approaching Strong threshold (70)

Action Items

Economic Regime Favours

Sectors historically outperforming in this phase of the business cycle.

XLP, XLU, TLT, GLD

Caution: Persistent Weakness

Sectors with an Avoid signal or in Weinstein Stage 4 (confirmed downtrend), excluding sectors currently favored by the economic regime.

XLI

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