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Where can investors find a safe haven during a period of market uncertainty? Personally, I think it’s as simple as focusing on the stocks managing to display bullish technical structures at a time when they are becoming remarkably rare! Today we’ll use the StockCharts scan engine to identify charts showing strength despite broader market weakness.

There’s Strength in Financials But Not the Banks

The first chart on my list from this week’s scan, CME Group (CME), was featured in my recent podcast interview with Jay Woods, CMT. We talked about how the financial sector had been quite strong so far in 2025, but that the really impressive charts were the exchanges.

The simple fact that CME currently sits above two upward-sloping moving averages means this name is in a small subset of the S&P 500 that can still make that claim. The momentum picture has remained quite strong, with recent pullbacks bringing the RSI no lower than the 40 level. The improving relative strength at the bottom tells perhaps the most important story, showing how this stock has consistently outperformed the S&P 500 in 2025.

As long as the trend continues to form a pattern of higher highs and higher lows, and the moving averages continue to slope higher, I would consider this chart “innocent until proven guilty.”

Auto Parts Remains a Strong Group in a Struggling Sector

While I’ve found numerous ideas in the Consumer Staples sector in 2025, given the renewed strength in this previously beaten down sector, this next chart is actually in the Consumer Discretionary sector. Auto parts names like Autozone Inc. Nevada (AZO) have pulled back this week from an overbought condition, but the chart remains in a primary uptrend of higher highs and higher lows.

Similar to CME, we can observe a classic uptrend pattern over the last 18 months. We can also see an ascending triangle pattern through much of 2024, with a fairly consistent resistance level and an upward-sloping trendline connecting the swing lows. The upside breakout in December 2024, followed by a retest of that previous resistance level into mid-January, seems to confirm the long-term bullish technical structure.

What strikes me about both of these charts is that they show no real signs of market instability. At a time when it feels like pretty much everything is rotating lower amidst growing market turmoil, stocks that indicate they are somehow immune to bearish market forces deserve our respect and attention.

Three-Month Highs Often Signal Renewed Strength

How did I identify these winning names at a time when they seem very difficult to find? I simply used the StockCharts scan engine to identify stocks making a new 13-week high. You can copy and paste the text below into the Scan Workbench to run this scan using your own login.

[type = stock]

and [group is not ETF]

and [[exchange = NYSE] or [exchange = NASD]]

and [market cap > 5,000]

//and [group is SP500]

and [Weekly Close > Last Week’s MAX(13,Close)]

Those last two lines are the most important, as the rest is basically filtering the universe down to stocks traded on the major US exchanges with a market cap over $5 billion. The fifth line has two slashes before the parameter “group is SP500”, which tells the scan engine to ignore that line. I like to include that line in every scan I run, as I often toggle between a larger equity universe and then just to the S&P 500 members.

The final line looks for stocks where the current weekly closing price is higher than the previous 13 weekly closing prices. And while this particular scan would certainly include stocks that have been in long-term uptrends for well over three months, I’ve found new three-month highs can be a great place to start to look for charts just beginning to emerge from a basing pattern.

For the other three stocks I found earlier this week using this scan, and much further detail on the technical implications of these charts, check out my latest video on the StockCharts TV YouTube channel!

RR#6,

Dave

PS- Ready to upgrade your investment process? Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

Business

Elon Musk’s politics are hurting Tesla, 85% say in investor survey

More than eight out of every 10 respondents to a Morgan Stanley survey believe Tesla CEO Elon Musk’s controversial political activities are hurting his business.

In total, 85% of the 245 participants polled by the firm believe Musk’s foray into politics has either had a “negative” or “extremely negative” impact on business fundamentals. The majority of respondents also expect Tesla deliveries to fall this year, according to the survey.

While a small sampling, these results offer the latest sign of mounting frustration with the billionaire entrepreneur as he’s become a rising figure in international and American politics. It also comes at a pivotal point for Tesla’s stock, with shares plunging nearly 40% this year.

When asked about Musk’s efforts with U.S. government efficiency and other political activities, 45% of respondents said these actions had a “negative” effect on the company. Another 40% said they were having an “extremely negative” impact.

On the other hand, 3% said they were “positive” for the business. Meanwhile, 12% called them “insignificant.”

To be sure, Morgan Stanley analyst Adam Jonas reported that his survey respondents are drawn from his email distribution list and should not be taken as a random representative sample. He also noted that the respondents are not necessarily owners of Tesla stock. The survey was taken over a 17-hour period, starting on Tuesday afternoon.

Jonas also asked about expectations for the company’s performance. In a separate question, 59% said they anticipated Tesla would deliver fewer cars to customers in 2025 compared with the prior year. What’s more, 21% of total respondents said they expected a decline of more than 10%. That comes as some analysts have raised alarm that recent reports of vandalism could spook potential customers.

Just 19% of responders said they forecasted deliveries to rise in 2025, while another 23% said they would be flat between the two years.

Musk’s political profile has grown after his public support of President Donald Trump in the runup up to last year’s election and his subsequent role leading the Department of Government Efficiency, or DOGE. The Tesla executive’s efforts to slash the federal government’s spending and workforce has drawn the ire of critics who see his team as working too quickly and haphazardly.

Musk acknowledged in an interview with Fox Business on Monday that his high-profile role in Trump’s administration meant he was running his businesses, which also include X and SpaceX, “with great difficulty.” That day, Tesla shares tumbled more than 15% for their worst session since 2020.

Despite the recent nosedive, 45% of respondents said they anticipate Tesla shares will be at least 11% higher by the end of the calendar year. Around 36% expect the stock to tumble another 11% or further by year-end, while 19% see the stock staying within 10% of its price around $220.

After a New York Times report last week unearthed criticisms of Musk’s team from members of Trump’s cabinet, the president offered a vote of confidence on Tuesday. Trump evaluated five Tesla vehicles parked at the White House after the president said on social media that he would buy one as a symbol of support.

Trump also said he would declare violence at Tesla dealerships to be acts of domestic terrorism.

This post appeared first on NBC NEWS

Business

Spirit Airlines, fresh from bankruptcy, is ready to take on the new Southwest, CEO says

Spirit Airlines is out of bankruptcy, hitting its target to emerge in the first quarter, after a crippling few years. CEO Ted Christie says the carrier is leaner and ready to take on competitors, including rival Southwest Airlines.

Earlier this week, Southwest shocked customers by announcing it will start charging for checked bags for the first time in its half-century of flying, a huge strategy move for the largest domestic U.S. carrier. (There are some exceptions to Southwest new bag rules, which take effect in late May.)

“I think it’s going to be painful for a little bit as they find their footing, and we’re going to take advantage of that,” Spirit’s Christie said in an interview Thursday.

Southwest had been a standout in the U.S. by offering all customers two free checked bags, a perk that has endured recessions, spikes in fuel prices and other crises while most rivals introduced bag fees and raised them every few years.

Spirit Airlines, on the other hand, made a la carte pricing common in the U.S., with fees for seat assignments, checked bags and other add-ons. It’s a strategy most large airlines, except for Southwest, have copied in one form or another.

As Southwest starts charging for bags and introduces its first basic economy class, which doesn’t include a seat assignment or allow free changes, Spirit could possibly win over customers, Christie said.

Southwest said it would get rid of its single-class open seating model last year.

“There at least was an audience of people who were intentionally selecting and flying Southwest because they felt that it was easy. They knew they were going to get two bags,” Christie said. “Now that that’s no longer the case, it’s easy to say that they’re going to widen their aperture and they’re now going to look around.”

Spirit is far smaller than Southwest and even smaller than it was last year, but it competes with the airline in cities like Kansas City, Missouri; Nashville, Columbus, Ohio; and Milwaukee. If customers look on travel sites like Expedia, where Southwest is a new entrant, Spirit’s tickets could be cheaper and appear higher in results, Christie said.

Other airline executives have also said they expect to win over some Southwest customers.

Delta Air Lines President Glen Hauenstein said at a JPMorgan industry conference Tuesday that there are consumers who choose Southwest based on its free-bag perk “and now those customers are up for grabs.”

Spirit, for its part, has recently been offering more ticket bundles that include things like seat assignments and luggage.

The carrier is now focused on returning to profitability. It posted a net loss of more than $1.2 billion last year, more than double its loss in 2023 as it grappled with grounded jets because of a Pratt & Whitney engine recall, higher costs, more domestic competition and a failed acquisition by JetBlue Airways.

Spirit has rejected multiple recent merger attempts by fellow budget carrier Frontier Airlines. Christie said Thursday that nothing is “off the table” and that a fifth-largest airline as a low cost carrier in the U.S. makes sense, but that the airline is focused on stabilizing itself after bankruptcy.

Through its restructuring process, which started in November, Spirit said it reduced its debt by about $795 million. The transaction converted debt into equity for major creditors. The carrier also received a $350 million equity infusion.

Spirit plans to relist its shares on a stock exchange but hasn’t set a date yet.

This post appeared first on NBC NEWS

Business

Donatella Versace steps down as head of Italian fashion house

Donatella Versace announced Thursday that she is stepping down as chief creative officer of Versace, ending her nearly 30-year-long stint at the Italian luxury fashion empire’s helm.

Versace, 69, took on the role to lead the luxury fashion house after her brother and its founder, Gianni Versace, was fatally gunned down outside his Miami Beach mansion in 1997.

‘It has been the greatest honor of my life to carry on my brother Gianni’s legacy,’ Versace wrote on Instagram. ‘He was the true genius, but I hope I have some of his spirit and tenacity.’

Following her brother’s death — and despite not having a background in design or fashion — Versace quickly became a living embodiment of the Versace brand and remains a beloved figure within the fashion industry.

Italian fashion designer Gianni Versace.Toni Thorimbert / Sygma via Getty Images file

The 69-year-old’s iconic pin-straight blond hair and her unparalleled ability to bring together the industry’s top models, including Naomi Campbell and Cindy Crawford, for the fashion house’s out-of-this-world runway shows became as emblematic of the brand as its gold mythological logo.Emmanuel Gintzburger, CEO of Versace — whose parent company is fashion conglomerate Capri Holdings — said that the brand ‘is what it is today because of Donatella Versace and the passion she has brought to her role every day for nearly thirty years.’

‘The universal values she stands for and her love for uncompromised creativity anchored Versace far beyond a brand or a company,’ he said in a statement. ‘Working alongside her has been an incredible privilege and pleasure.’

Dario Vitale, the former design and image director of Italian brand Miu Miu, will lead the fashion house as its new chief creative officer, the company said in a statement.

“I want to express my sincere thank you to Donatella for her trust in me, and for her tireless dedication to the extraordinary brand that Versace is today,” Vitale said in a statement. “It is a privilege to contribute to the future growth of Versace and its global impact through my vision, expertise and dedication.”

Versace will stay on at the company as its chief brand ambassador.

‘I will remain Versace’s most passionate supporter,’ she said. ‘Versace is in my DNA and always in my heart.’

This post appeared first on NBC NEWS

Editor's pick

‘You are there and you are not alive’: the harsh testimony of a deported Venezuelan who spent 15 days in Guantanamo

With his hands and feet handcuffed, tied leg to leg with other detainees, José Daniel Simancas Rodríguez was put on a plane. He says he was told he would go to Miami.

Hours later, when they landed, Simancas and his fellow passengers were transferred to a bus with the windows covered by bags. By then he already suspected where he had arrived: Guantanamo. What he did not imagine was that this was just the beginning of a nightmare that would last 15 days.

Simancas was one of 177 Venezuelans deported by the United States who had been transferred to the US naval base in Cuba, a measure criticized by human rights organizations who say the base is not appropriate for housing migrants.

Although at some point he had been told that he would be deported, the 30-year-old Venezuelan feared that he would never see his five children again. “I had already completely given up,” he recalls.

“That’s what torture is, confinement. You are not alive. You are there and you are not alive, where you don’t know if it is day or night, you don’t really know the time, you are eating poorly, every day that you are there you are dying little by little. I cried every day during those 15 days.”

He says that in 15 days, he was allowed to shower only twice and that to do so they took him to the bathroom with handcuffs, carried out thorough security checks on him and kept him under constant surveillance. He felt that he was being treated like a terrorist, he says.

The hunger he suffered during his stay in Guantanamo is what he remembers most, he says. Three plates a day of food that he does not remember fondly and in portions that he believes were very small. “He licked the plate” as if the food was very tasty, but in reality he did it because he was so hungry.

A long road to ‘hell’

Like many immigrants, Simancas says he arrived illegally in the United States in May 2024 through the dangerous Darien jungle. He had previously lived in Ecuador, where he says he stayed until 2022. He then spent time in Panama, Costa Rica and Mexico while continuing his journey north. This entire journey was aimed at finding a better life, he says.

From a very young age, he says he has worked in construction, first as a laborer and then as a construction foreman in Venezuela, Ecuador and Costa Rica. His plan was to do the same on American soil.

However, when he arrived in the United States, he was detained and spent eight days in a federal prison and then in the US Immigration Service Detention Center located in El Paso, Texas, he says, where he remained for nine months awaiting deportation.

During his interview by immigration agents, he said he was born in Maracay, Aragua state – a detail that he believes may have raised alarm bells for US officials. Then they saw that he had tattoos, which he says he has had since he was 16. Officials began asking him questions to determine if he had any ties to the Venezuelan criminal gang Tren de Aragua, considered a terrorist group by the United States.

US authorities have previously claimed that Venezuelan migrants sent to Guantanamo had ties to Tren de Aragua.

“I was the only one they set aside, just for saying I was from Maracay … for them, I was already part of the Tren de Aragua,” said Simancas, who added that they immediately accused him of being a criminal.

The Trump administration had announced that Guantanamo Bay was reserved for transferring “the worst of the worst,” although several court filings revealed that not all those sent there represent a “high threat.”

Simancas says that the group of 15 people with whom he was detained had been told that they would be transferred to Miami, but they ended up at the base in Cuba.

His stay in Guantanamo ended on February 20, when the Venezuelans held at the military base were taken to Honduras and then picked up there by a plane from Venezuela’s state airline Conviasa, sent by the Venezuelan government.

The government of Venezuelan President Nicolas Maduro said at the time that it had requested the repatriation of the Venezuelans who were “unjustly” held in Guantanamo.

“They are not criminals, they are not bad people, they were people who emigrated as a consequence of the sanctions [of the United States] … in Venezuela, we welcome them as a productive force, with a hug of love,” said Maduro.

According to UNHCR, almost 8 million people have left Venezuela since 2014 as a result of the political, economic and social crisis in the South American nation.

Maduro said on Saturday that the decision of the United States to revoke the license for the American oil company Chevron to carry out some operations in the South American country “affected” the dialogue between both nations, as well as the flights to repatriate Venezuelan migrants.

He now says he wants to try to find opportunities doing what he says he has always done, working in construction and leaving behind his hopes of fulfilling the American dream that ended up full of memories he now prefers to forget.

“I have spoken with everyone and they tell me that they do not sleep. If they did all that to prevent one from returning to the country, they succeeded. They wanted to give us a trauma, they succeeded,” said Simancas about his return to Venezuela, adding that in Guantanamo, “you want to kill yourself every day.”

If you or someone you know is struggling with suicidal thoughts or mental health issues, please call the National Suicide Prevention Lifeline at 1-800-273-8255 in the US. Click here for help in Latin American countries and Spain. Learn more at cnne.com/ayuda.

This post appeared first on cnn.com

Editor's pick

Israel acknowledges possible forced use of civilians in Gaza military operations, launches investigation

This is the first time the military has acknowledged that there is “reasonable suspicion” to believe soldiers forced civilians to take part in military operations.

“In several cases, the Military Police Criminal Investigation Division opened investigations after reasonable suspicion arose regarding the use of Palestinians for military missions during the operations,” the IDF said.

The military would not confirm how many investigations had been opened, nor who was being investigated.

“Those investigations are still ongoing, and accordingly, other details cannot be provided at this time,” the IDF said.

The practice was reportedly so common in the Israeli military that it had a name: “mosquito protocol.”

The exact scale and scope of the practice by the Israeli military is not known. But the testimony of both the soldier and five civilians last year indicated that it was widespread across the territory: in northern Gaza, Gaza City, Khan Younis and Rafah.

“They would ask us to do things like, ‘move this carpet,’ saying they were looking for tunnels,” he said. “‘Film under the stairs,’ they would say. If they found something, they would tell us to bring it outside. For example, they would ask us to remove belongings from the house, clean here, move the sofa, open the fridge, and open the cupboard.”

This post appeared first on cnn.com

Editor's pick

Ecuador partnering with Blackwater founder in divisive nationwide crackdown on crime

Ecuadorian President Daniel Noboa has announced a “strategic alliance” to fight organized crime with Erik Prince, the founder of the controversial private defense contractor formerly known as Blackwater.

Noboa, who launched a divisive military operation against criminal groups last year, posted a photo on X and Instagram showing him chatting with Prince at an office with an Ecuadorian flag in the background.

“We have established a strategic alliance to strengthen our capabilities in the fight against narcoterrorism and the protection of our waters from illegal fishing,” Noboa wrote on Tuesday. “There is no truce. There is no retreat. We are moving forward,” he added.

The president did not provide details on the partnership.

Noboa’s announcement has raised eyebrows in Ecuador. Former Army commander Luis Altamirano criticized the partnership, calling it “deplorable” that “they seek to hire the services of a mercenary army.”

“It’s truly deplorable that, under the guise of ‘international cooperation,’ they seek to hire the services of a mercenary army. In the end, the announced ‘special forces’ were a dubious private company. Is this announcement just another smokescreen?” the retired general said on X.

Prince, who is the brother of US President Donald Trump’s former Education Secretary Betsy DeVos, founded Blackwater, which gained notoriety in 2007 during the Iraq War, when its private contractors opened fire in Baghdad’s Nisour Square, killing 17 Iraqi civilians.

Four contractors were convicted and later pardoned by Trump.

Following the massacre, the company changed its name and Prince sold the firm in 2010. He currently identifies himself on his website as an investor, entrepreneur and leader in military affair reforms.

Prince was a prominent Trump supporter during the 2016 campaign. He spent time around senior transition officials and informally advised the Trump White House on some major foreign policy decisions early in Trump’s first term.

Ecuador’s crime crackdown

In his post announcing the partnership with Prince, Ecuador’s president wrote: “Organized crime has sown fear and believed it can operate with impunity. Their time is up. International aid begins in Ecuador.”

In early 2024, Noboa launched a nationwide crackdown to stop an outburst of gang violence. But the president, who is seeking reelection this year, has insisted that his country needs foreign support to solve the security crisis driven by local criminal groups linked to international drug cartels.

Ecuador has the highest homicide rate in Latin America, with 38.8 per 100,000 inhabitants, according to the most recent report from the organized crime research and analysis center InSight Crime. It is followed by Venezuela, Colombia, Honduras, and Brazil.

The Ecuadorian Ministry of the Interior says the start to the year has been the most violent in the country’s history, with more than 1,000 homicides.

The president said in a radio interview on Monday that Ecuador would receive international assistance and support in the coming days through “special forces abroad” that would arrive in the country to join the fight against organized crime.

Noboa did not specify where this new international support would come from, nor under what mechanisms foreign forces would operate in the country.

This post appeared first on cnn.com

Editor's pick

Putin makes surprise visit to Kursk as Trump says peace is ‘up to Russia now’

President Vladimir Putin made a surprise visit to Russia’s occupied Kursk region on Wednesday, as the Kremlin considers a US proposal for a 30-day ceasefire with his troops closing in on Ukraine’s only territorial bargaining chip.

Wearing military uniform in video broadcast by Russian state television, Putin told frontline troops that Moscow’s goal is to “completely liberate” Kursk as soon as possible, during his first trip to the western region since Ukraine’s unexpected incursion there last year.

Putin’s carefully choreographed visit appeared designed to boost morale as Russian forces advance on the final remnants of Ukraine’s holdouts inside Russia, a day after peace talks between US and Ukrainian officials resulted in Kyiv accepting a 30-day US-backed ceasefire covering the entire frontline.

Russia’s lightning advance in Kursk threatens Kyiv’s sole territorial bargaining counter at a crucial time in the war when a potential ceasefire hangs in the balance.

US President Donald Trump said on Wednesday that the ball is now in Putin’s court as US representatives headed to Russia “right now as we speak,” to discuss the ceasefire proposal.

“We’re going to have to see. It’s up to Russia now,” Trump told reporters in the Oval Office, as he declined to comment on whether he has a meeting scheduled with the Russian leader.

Kremlin spokesperson Dmitry Peskov told reporters on Wednesday that Putin was “carefully studying” the proposal, as Moscow waits to be briefed by US officials in the coming days.

Hours later, Russian state media footage showed Putin meeting with his top general Valery Gerasimov in Kursk before delivering a speech to soldiers, in which he urged them to oust the remaining Ukrainian forces in the region and raised the possibility of creating a “buffer zone” along Russia’s border with Ukraine.

Ukrainian soldiers captured in Kursk should be treated as “terrorists,” Putin added.

Ukraine launched its shock incursion into Kursk in August, swiftly capturing territory in what was the first ground invasion of Russia by a foreign power since World War II. As well as capturing land that could potentially be swapped for Russian-occupied territory, the campaign aimed to divert Moscow’s resources from the front lines in the east.

But Ukraine has struggled to hold onto its captured territory, with its grip on the region rapidly deteriorating in recent days.

On Wednesday, Gerasimov claimed that Russian forces had recaptured more than 86% of the area taken by Ukraine, that 430 Ukrainian soldiers had been taken prisoner – and the remaining Ukrainians were surrounded.

Kyiv’s hopes of using Kursk as a bargaining tool in negotiations had “totally collapsed,” Gerasimov claimed.

Peskov on Thursday said the operation to oust the remaining Ukrainian forces has entered its final stage, state news agency TASS said.

Ukraine’s army has admitted to being driven out of several settlements in Kursk by Russian forces in recent days.

On Wednesday, Ukraine’s top general Oleksandr Syrskyi hinted at further tactical retreats to “more favorable positions,” saying his priority was to “save the lives of Ukrainian soldiers.”

Russia had carried out airstrikes on its own land, including the town of Sudzha, which was “almost completely destroyed,” Syrskyi added.

Trump’s Special Middle East envoy Steve Witkoff is expected to travel to Russia later this week, though it is unclear whether he plans to meet with Putin, with whom he met last month.

Vice President JD Vance, speaking in the Oval Office, noted that conversations are happening “on the phone and in person with some of our representatives over the next couple of days.”

This post appeared first on cnn.com

Editor's pick

Russia says it has recaptured key Kursk region town, as Trump says peace is ‘up to Russia now’

Russian forces have recaptured Sudzha, the largest town that Ukraine once occupied in the Kursk region, according to Moscow, threatening Kyiv’s sole territorial bargaining chip amid pressure to negotiate an end to the war.

“In the course of the offensive operations, units of the North military group liberated the settlements of Melovoy, Podol and Sudzha,” the Russian defense ministry said Thursday.

Wearing military uniform in video broadcast by Russian state television, Putin told frontline troops that Moscow’s goal is to “completely liberate” Kursk as soon as possible, during his first trip to the western region since Ukraine’s unexpected incursion there last year.

Putin’s carefully choreographed visit appeared designed to boost morale as Russian forces advance on the final remnants of Ukraine’s holdouts inside Russia, a day after peace talks between US and Ukrainian officials resulted in Kyiv accepting a 30-day US-backed ceasefire covering the entire frontline.

US President Donald Trump said on Wednesday that the ball is now in Putin’s court as US representatives headed to Russia “right now as we speak,” to discuss the ceasefire proposal.

“We’re going to have to see. It’s up to Russia now,” Trump told reporters in the Oval Office, as he declined to comment on whether he has a meeting scheduled with the Russian leader.

Kremlin spokesperson Dmitry Peskov told reporters on Wednesday that Putin was “carefully studying” the proposal, as Moscow waits to be briefed by US officials in the coming days.

This is a developing story and will be updated.

This post appeared first on cnn.com

Stocks

How to Spot a Market Rebound Before Everyone Else Does

Problem: How can you tell if an index is about to reverse—even before the price reflects it?

Answer: Look at what’s happening internally within the index—in other words, analyze market breadth, also called “participation.”

Spotting a Rebound in a Plunging Market

Like most investors, you look to the three major indices—DJIA, S&P 500, and the Nasdaq—to get an immediate glimpse of the market. But when all three are cratering, like most of the sessions we’ve seen this week and last, you often won’t find any early hint of a rebound or reversal from the indices themselves.

Indices can be misleading because they don’t reflect the movement of individual stocks within them. They are market-cap-weighted, meaning a few big stocks can skew the picture, masking broader market trends.

What this means is that, if you’re looking for signs that the market may be turning more bullish amid a wave of selling, you need to look at what’s happening internally. Are all stocks and sectors following the decline, or are some starting to rise—even if their movements aren’t reflected in the index price?

Enter the McClellan Oscillator

The McClellan Oscillator is one of many market breadth indicators that track the internal movements of the stock market and, by extension, the indices that represent them. Breadth indicators can help confirm trends and, more importantly, expose underlying weaknesses in rallies or hidden strengths in declines, helping you spot potential reversals before they appear in price.

Specifically, here’s a nutshell description of how the McClellan Oscillator works:

It measures market breadth, tracking advancing vs. declining stocks to give a clear picture of overall participation.
A reading above zero indicates bullish momentum (more advancing than declining stocks).
A reading below zero suggests bearish momentum (more declining than advancing stocks).
Crossovers help identify trend reversals. A crossover above or below zero can confirm a shift in market momentum.
Divergences also suggest potential reversals early on. If the oscillator moves opposite the index, it may signal that a reversal may be underway.

The last two points are what I will focus on in this article. Given the current tariff-fueled plunge, are any of the three indices showing signs of a potential reversal? And, if not, what should you look out for?

Let’s start with the S&P 500 ($SPX). Here’s a daily chart. For a more expansive breadth context, I am including the Bullish Percent Index (BPI) to show yet another angle on market breadth.

FIGURE 1. DAILY CHART OF THE S&P 500. Buyers are jumping in at the key 61.8% Fibonacci Retracement level. But does the overall participation support this reversal thesis?

Anticipating a downside target, I drew a Fibonacci Retracement from the (2024) August low to the December high. Bullish traders anticipating a rebound at the 61.8% level have started to enter their positions.

From a market breadth perspective, it’s too early to tell whether this key support level will signal a reversal. The NYSE McClellan Oscillator (a large portion of S&P 500 stocks trade on the NYSE) shows that declining shares within the index outweigh the advancing shares. The BPI reading, on the other hand, confirms this reading, as fewer than 50% of S&P 500 stocks are generating Point & Figure buy signals, a condition favoring the bears as it also signals technical weakness.

What to look for in the coming sessions: Notice the pink lines on both the chart and the McClellan indicator window signaling divergences. Look for bullish divergences or a crossover above the zero line in the coming sessions. However, don’t treat these as automatic buy signals. Instead, they suggest potential bullish conditions, suggesting you construct an entry setup if one presents itself.

Now, let’s look at a daily chart of the Nasdaq 100 ($NDX).

FIGURE 2. DAILY CHART OF THE NASDAQ 100. Declines are starting to stabilize as buyers enter the market, but it may be too soon to call a reversal.

The Nasdaq 100 shows a similar Fib Retracement reaction as in the S&P 500 example above; namely, buyers are jumping in at the 61.8% level.

The McClellan Oscillator remains bearish, but declines appear to be stabilizing (see pink lines). Notably, communications and healthcare stocks are slowing the drop. While not a bullish reversal signal, this shift could lead to a turnaround depending on how other sectors react in the coming sessions. Meanwhile, the BPI at 35%, tells you that the current price environment continues to favor the bears.

What to look for in the coming sessions. Similar to the previous S&P 500 example, keep an eye on the McClellan Oscillator readings for any bullish divergence or a crossover above the zero line. Remember, these signals indicate improving market breadth and potential upward momentum, but they are not automatic buy signals. Once a positive shift occurs, it’s going to require further confirmation from price action, volume, and other technical indicators before you jump into a trade.

A Two-Step Process

What I just demonstrated was a simple two-step process. Feel free to tweak it according to your preference. When a major selloff is underway…

You need a means to forecast downside price targets. I used Fibonacci Retracements to set my downside targets (you can use other indicators to project potential support and resistance levels).
Use a breadth indicator like the McClellan Oscillator to gauge how prices react to those downside targets. Namely, divergences and crossovers should alert you to the possibility of a reversal.
Add other indicators to confirm the reversal when it happens. Don’t rely solely on one indicator; check price action, volume, and momentum, and have an exit plan in case it doesn’t follow through.

At the Close

Here’s the main point. You can use the McClellan Oscillator to anticipate turns in an index before it tips its hand, so to speak. It reveals shifts in market participation before such shifts become evident in prices. While major indices can be misleading due to their market-cap weighting, the oscillator focuses on breadth and momentum across all stocks and sectors comprising an entire index or market.

As of now, the S&P 500 and Nasdaq 100 show no clear signs of a bullish reversal. However, when a shift does occur, the McClellan Oscillator may be among the breadth indicators to signal it first—so keep an eye on it.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.