Power Hour #37: The Fragile Regime – Friday 5/8/2026

Power Hour Brief

Power Hour Brief – Ride the Wave into Close

Regime Check — Where Are We Now?

Today’s market shows a contraction in breadth since yesterday, with a decrease in stocks above key moving averages.

• Breadth is contracting, as indicated by the decrease in stocks above the 20 SMA from 120% yesterday to 105% today and the 40 SMA from 67.64% to 64.52% today.
• Technology (RSPT) is the leading sector, showing a “rising” trend with a current value of 4.97, hitting the 100th percentile rank.
• Given the sector rotations and breadth contraction, the overall character is choppy.

Strategy Signals — Continuation, Reversal & SIP

• INOD shows the strongest continuation signal with an 86.1% change and 9.1 RVOL.
• AORT is flagging a strong reversal setup trading at $26.37, down -25.6% with 12.0 RVOL.
• Of the SIP leaders, Outset Medical Inc (OM) at $4.68 and Nelnet Inc (NNI) at $141.36 reported worse-than-expected Q1 results.
• PLASTICS is relevant as Technology is the strongest sector (RSPT is at the highest percentile and trending up).

Closing Playbook — What To Do Now

• Consider closing short positions in ANIP at $84.76, given it is showing a slight gain of 1.0% on the Reversal Bullish screen.
• Watch for a potential entry in INOD if the strong continuation pattern holds into the close.
• Since SPY data is unavailable, we cannot provide specific levels and resulting actions.

Tomorrow’s Early Look

• Watch for any overnight news, especially in the Technology sector, influencing markets.
• Monitor RSCP, financials and industrials as they are both showing a downward trend.
• With the Technology sector so strong and breadth contracting, be cautious of further rotation out of weaker sectors.