SMO Dashboard Fri 2026-03-06 (Market = Bearish Late Phase)
TLDR:
This dashboard uncovers strength and weakness at the market, sector, industry, sub-industry, and stock levels to aid decision-making in the prevailing market environment.
Commentary
The Market Strength Score is now late stage Bearish. Be cautious - this is high risk territory.
The tracked indexes were:
- Strengthened/+1: None
- Strengthened/0: None
- Unchanged: None
- Weakened/0 NDX (5Average)
- Weakened/-1 SP500 (5Average), SOX (4Strong), MAG7 (6Weak).
The dashboard has red everywhere. Computer Software & Services and Internet are showing relative strength, although as a whole they are weaker. This does mean they have a higher ceiling.
The column labeled "Rating" reflects the strength (based on this system's criteria) of the individual vehicle (index, sector, or industry).
Market Strength Score
Currently -88%, Phase -3 late Bearish. Expect volatility with the possibility of a cascading decline, though be ready to turn positive even if the headlines seem dismal (see this post for an example of this concept).
SPDR Sector ETFs Detail
Only XLE Energy was on the green side this week and on the red side only XLRE Real Estate and XLP Consumer Staples escaped the worst rating.
Context - 10 Week Lookbacks, by ETF and by Week
XLE Energy is the only ETF that did not weaken and is the leader at 2Very Strong. XLC Communications, XLF Financials, and XLK Technology all weakened rating and are the weakest at 6Weak.
Sector ETFs Stocks Rated 1Strongest and 9Weakest
Long and short candidates are listed below, ranked based on market, sector, and stock strength characteristics. As a bonus, the bottom table shows 5Average stocks, for possible volatility-related strategies.
