SMO Insights Mon 2026-08-10: Phase +2 Bullish Maturing +58% (-3%)

Brian Degracia

11 Aug 2026 • 4 min read

Market not extended. On the bullish ledger, one Financial industry (Banking) is at a +3 Advanced stage and with two exceptions most industries are in +1 New with room to run. The Basic Materials, Communications, Energy, and Technology sectors are uniformly strong. The Utilities sector is uniformly weak and Healthcare is mostly weak.

See About for more detailed background to this analysis.

Goal: objectively determine what to do and when in the U.S. stock market

How: top-down, inside-out, and bottom-up market, sector, industry, sub-industry, and stock analysis

Example actions: long vs. short, trend follow vs. mean revert, aggressive vs. conservative, days vs. weeks expected holding period

Basis: where are there strength pockets and how much may remain

Tools:

Sector Strength Terrain Clock
single day snapshot showing where sectors and industries stand within the six-phase framework, plotted against today's Market Strength Score
Market Strength Score Gauge
Six-month context: today's Score compared to its own history and to S&P 500 price action over the same period
Industry Strength Scores by Sector
Alphabetical view of every sector and their component industries, showing current strength readings and phase thresholds at a glance
Industry Strength Scores Ranked
The same data sorted by strength: strengthening industries at the top, weakening industries below, used to identify pockets of least and most extended setups
Sector and Sector ETFs High-Level Reports
Summary snapshots of the 11 Sectors (all stocks) and the 11 Sector ETFs (comprising 502 stocks) using the Strength Spectrum concept
Sector Mid-Level and Detailed Reports
Also using the Strength Spectrum concept, provides comprehensive sector, industry, and sub-industry snapshots, overlaid with Sector Strength Terrain Clock readings

SMO Market Strength Score Gauge

Compare today's Market Strength Score to its readings over the past 6 months, and compare these readings to the S&P 500 during this period.

S&P500 near highs while MSS is +58% (max is +100%) so there remains room to run. It remains well below its April 75% high, with no guarantees regarding reaching or surpassing this high.

SMO Industry Strength Scores by Sector

The sectors are listed alphabetically and below each are their component industries listed alphabetically. The Phase +1, +2, +3, -1, -2, and -3 thresholds are labeled along with the current Market Strength Score.

These reveals sector strength breadth and depth.

75% of the industries are bullish/strengthening with only two (Banking and Insurance) standing out as in/near +3 Advanced. The Basic Materials (30% average Industry Strength Scores), Communications (17%), Energy (28%), and Technology (35%) sectors all have uniformly bullish industries, with averages firmly in +1 New territory. Conversely, Utilities (-52%) has uniformly weakening industries, with its Industry Strength scores more negative than the bullish industries are positive.

SMO Industry Strength Scores Ranked

The industries are listed based on strength score, first Strengthening industries then Weakening industries. The Phase +1, +2, +3, -1, -2, and -3 thresholds are labeled along with the current Market Strength Score.

This reveals the most attractive and extended industries.

Note Metals have turned positive/bullish and have a +10% score, plenty of room to move.

Nine industries are early in +1 New, implying much room to run. Banking remains positive but is extended, implying less comparative room to run while a bullish bias is still appropriate.

SMO Sector and Sector ETFs High-Level Reports

The Sector Report lists the strength spectrum readings for the 11 sectors. The Sector ETFs Report lists the strength spectrum readings for the 11 sector ETFs. Each report also shows the combined strength spectrum for all stocks in this universe and for the major indexes S&P 500 and NDX.

This provides a broad overview of market strength and weakness pockets.

Mixed strengthening and weakening ("Curr vs 1WA Status"). "Status" shows Utilities and Real Estate as comparatively weaker. Energy leads in both, while the larger cap ETFs report shows strengthening and leadership in XLB/Basic Materials and XLV/Healthcare. XLF/Financials is 3Stronger but weakened this week.

SMO Sector Mid-Level and Detailed Reports

The Mid-Level Report lists the strength spectrum readings for all stocks and the major indexes S&P 500 and NDX, then lists the same for key sectors and sector ETFs.

The Detailed Report expands upon this by overlaying the Sector Strength Terrain Clock Industry Strength Scores and adding industry and sub-industry detail.

This provides more refined market strength pockets, potential relative lasting power for these strengths, and potential stock-/option-specific actions.

Consumer Non-Cyclical, Financials, Real Estate, and Utilities all weakened over the past week while the other sectors strengthened. Utilities is comparatively weaker than the rest of the market. XLB, XLE, XLF, and XLV (Materials, Energy, Financials, and Healthcare) along with IGY (Software) are each at 3Stronger, leading the market.

For educational purposes only. These are NOT stock or investment recommendations. See this disclaimer.