Power Hour #14: 235 Bull Signals, 75% of Stocks Underwater: The Breadth Illusion Hiding in Plain Sight – Monday 3/16/2026

Regime Check — Where Are We Now?

Market breadth remains cautiously bullish with 235 bull 4% signals versus 43 bear signals, but underlying structure shows weakness with only 25% of stocks above their 20-day SMA.

• Breadth expanding modestly on the surface but participation remains narrow — classic late-cycle behavior
• Technology bouncing back (+2.2% today) while Consumer Discretionary (-2.16%) and Healthcare continue bleeding
• Energy sector (+4.8, 84th percentile) providing leadership while defensive sectors lag — risk-on rotation intact

Strategy Signals — Continuation, Reversal & SIP

• 2LYNCH continuation leader: CCUP exploding +18.2% on 0.9 RVOL — high-risk but momentum play into close
• Reversal setup: CTGO showing bullish divergence with 2.1 RVOL despite flat price action — watch for afternoon breakout
• SIP movers: BABA (+1.39% gap) on Ant Group approval holding gains, while CF bleeding on litigation settlement
• BBT action code: Volume surging in biotech names like IMMX (+6.8%, 1.7 RVOL) and COGT on FDA approval

Closing Playbook — What To Do Now

• Close positions: Any Consumer Discretionary longs showing weakness — sector in 11th percentile and falling
• Enter on confirmation: Energy names like AMPX (+4.5%) if they hold above morning highs into close
• Key level: If SPY holds current levels with Energy leading, expect continued risk-on rotation tomorrow

Tomorrow’s Early Look

• Watch for any biotech momentum follow-through after today’s FDA approval catalyst in COGT
• Setup forming: BABA consolidating around $135 — break above could target $140 on acquisition news
• Regime outlook unchanged — selective momentum in pockets while broad market remains choppy and narrow