$SPY $Q


Sentiment is positive, but it has not turned into euphoria. Momentum is still strong, while the premium ratio is at the maximum level. This shows that the options table continues to take risk.
But breadth is giving a serious warning. Breadth is 33.6 in Category Breakdown and 24 on the indicator side. So while the index and leading stocks are being carried higher, participation is still weak. On days like this, the screen can be green, but gains are still not distributed equally. The trend continues, but the carrying basket may remain narrow.
In short, this rally continues to be a rally where stock selection is very important.
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