Daily Pre-Market Brief

Neutral-Down — XLY leads the SPDR 11 — SPY trend Normal — 4 big movers — 2 squeeze setups building

August 3, 2026 · Data through the US close · Auto-generated from quantitative models

Final since . The numbers on this page do not change after that.

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 66.8/100 (MODERATE GROWTH) and sentiment reading NEUTRAL. Discretionary (XLY) leads at #1 with a Weak signal and score 55.1, while Utilities (XLU) trails at #11. 4 sectors 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

53.6/100

Macro Economic Indicator?

MODERATE GROWTH

66.8/100

Economic Regime?

Recession

US Sector Rotation (SPDR 11)

Rank	Δ	Sector	Signal	Quadrant	Score
1	↑3	XLYDiscretionary	Weak	Leading	55
2	→	XLFFinancials	Weak	Weakening	51
3	↓2	XLEEnergy	Weak	Weakening	51
4	↑3	XLIIndustrials	Weak	Lagging	51
5	→	XLKTechnology	Weak	Improving	50
6	↓3	XLVHealthcare	Weak	Weakening	48
7	↑2	XLBMaterials	Weak	Lagging	47
8	↑2	XLCCommunications	Weak	Lagging	45
9	↓1	XLREReal Estate	Weak	Lagging	42
10	↓4	XLPStaples	Weak	Lagging	41
11	→	XLUUtilities	Weak	Lagging	34

Notable Changes

⚡XLY (Discretionary) climbed 3 ranks to #1

⚡XLI (Industrials) climbed 3 ranks to #4

⚡XLI in TTM Squeeze (15 bars) — watch for breakout

⚡XLV (Healthcare) dropped 3 ranks to #6

⚡XLP (Staples) dropped 4 ranks to #10

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

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, XLB

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