OVERVIEW
Short-Term Noise, Long-Term Strength

The market remains in a constructive phase, with plenty of quality setups forming and a strong degree of follow-through in recent weeks. However, we are also in a period that doesn’t require overanalysis—right now, it’s about patience. The broader trend is healthy, but short-term choppiness has made it difficult for breakouts to gain immediate traction, meaning selectivity is key.

Yesterday, the S&P 500 (both the RSP & SPY) pushed past breakout levels, but overall, price action has been quiet and consolidative. This type of pause is healthy—it allows the market to digest recent gains and build a stronger foundation for the next potential leg higher. Rather than forcing trades in a slower environment, the focus should be on staying prepared for when momentum fully returns.

One of the more encouraging signals is market breadth. Nearly 70% of S&P 500 stocks outperformed the index yesterday, with over 170 names gaining more than 1%. This tells us that strength is widespread and not just coming from a few mega-cap stocks. When rallies are broad-based like this, they tend to be more sustainable, as leadership emerges across multiple sectors.

Nasdaq

The QQQ has not only broken out successfully—which it did three sessions ago—but more importantly, it has followed through with strength, continuing to rally into new all-time highs. This kind of sustained momentum is a strong signal of underlying demand, particularly in what is already the market’s leading index.

Yesterday’s session was especially notable. Despite an early pullback, where QQQ briefly tested the prior day's lows, it was met with a strong wave of buying pressure. What stood out was the lack of aggressive selling—sellers barely put up a fight, allowing buyers to step in and push the index higher with ease.

This kind of price action is incredibly constructive, reinforcing that demand remains strong and that institutions are still actively accumulating. As long as we continue to see follow-through like this, the broader market backdrop remains favorable for momentum and breakout trading.

S&P Midcap 400

Midcaps continue to lag behind, which isn’t surprising given their recent relative weakness. However, we saw exactly what we discussed in yesterday’s report—a decisive breakout above MDY’s point of control (POC) at $587, and importantly, it happened on high relative volume.

This is exactly the kind of progress we want to see. While MDY remains range-bound, chopping sideways with more overhead supply to work through, the action here continues to look constructive. The key takeaway is that buying pressure is present, suggesting accumulation rather than distribution.

Now, the focus shifts to whether MDY can build on this breakout and push toward the top of its trading range. A sustained move higher from here would help confirm that midcaps are gaining traction, which would further support a broader market advance.

Russell 2000

Small caps are approaching a critical test as they gear up to challenge their overhead supply at the $228 POC level. This will be a tough battle—there's been a clear pattern of rejection at this level over the past few weeks, with IWM struggling to break through.

However, the Visible Range Volume Profile (VRVP) gives us key insights—a clean breakout above $228 and ultimately past the final resistance near $230 could trigger a much smoother move higher. There is very little supply between $230 and all-time highs, meaning a breakout could lead to a quick and decisive rally if buyers step in with conviction.

DAILY FOCUS
Our Job Is To Execute, Not Predict

The market is presenting opportunities, but not all are high-probability trades. Right now, we’re seeing a mix of constructive setups and frustrating price action—where some stocks are breaking out at the wrong time (right before earnings) or failing initial moves only to rally later. The key is to stay disciplined, selective, and adaptable.

Here’s how to navigate this environment effectively:

🔹 Prioritize Clean Setups: Avoid chasing stocks that look good on the surface but are extended or lack proper structure. Instead, focus on multi-month bases, Stage 1 setups, and stocks with clear accumulation patterns.

🔹 Use Weekly Charts for Confirmation: The daily chart can be deceptive—what appears to be a tight bull flag might actually be stretched on the weekly timeframe. Make sure the stock has room to run before committing capital.

🔹 Stick to Your Process, Not Your Bias: If a setup meets your criteria, execute without hesitation. If it doesn’t, move on. Overtrading in choppy conditions will drain both your capital and your confidence.

🔹 Protect Capital, Stay Patient: The goal isn’t to take every trade—it’s to take the right trades. A market that chops around today can set up explosive moves tomorrow. Don’t waste ammo on low-quality setups.

Breakouts will get easier to trade as momentum builds across the board. Your edge comes from staying ready, not forcing trades. The next leg higher will happen—make sure you have the discipline to capitalize when the time is right.

WATCHLIST
Today’s Potential Entries

WIX: Wix.com Ltd

• WIX reported earnings today, and while it hasn’t delivered the classic high-volume gap-up, it remains in a long consolidation phase that could set the stage for a breakout. The report itself was solid, and we may start to see WIX push higher as the market digests the results.

• Yesterday’s session showed a strong bounce off the rising 50-EMA, a level that has been well-respected over the past few weeks. This kind of price action signals that buyers are stepping in at key support, reinforcing the stock’s constructive setup.

• Today, the focus will be on whether WIX can take out its opening range high with strong relative volume. If momentum picks up, we could see a sustained move higher, making this an important session to watch closely.

MYO: Myomo Inc.

• MYO has been building a long-standing base since mid-December 2024, and we are now seeing constructive volume and price range contraction, signaling that a strong move in either direction may be imminent. Given its positioning, MYO appears ready for an aggressive breakout or breakdown, making this a key name to watch.

• As a momentum leader, MYO has demonstrated strength despite recent choppiness in the broader market. Our focus is on a breakout above $6.45 as a potential entry point, provided we see strong confirmation.

• While the overall healthcare sector has shown some weakness, MYO has displayed clear relative strength, and its specific industry group remains a leader within the sector. If momentum builds, this could be a high-probability trade worth tracking closely.