Optioneering Team Update
Market shakeout gives way to stronger breadth
Optioneering Team Market Update July 10, 2026
The artificial intelligence and broader momentum trades just endured a fierce, concentrated shakeout. This de-risking phase reached a boiling point on Tuesday with heavy gap-downs, causing severe single-stock volatility that slashed 25% or more off several marquee leaders in just a few days. However, calling precise bottoms is always a guessing game, but the subsequent price action has been incredibly promising. Massive dip-buying flooded into these identical names on Wednesday and Thursday, triggering explosive bounces that are rapidly repairing chart damage and reclaiming key moving averages. It was highly encouraging to see all four major U.S. indexes finish right at their intraday highs by Thursday’s closing bell, putting the market in an excellent position for Friday follow-through to cap off a wild week.
Despite the localized tech drama early in the week, the market’s foundational metrics are explicitly telling us this structural bull market is thriving. The recent multi-week sector rotation did exactly what it was designed to do: it distributed strength across the board and radically optimized market breadth. Right now, roughly 65% of S&P 500 components are locked into confirmed short-, medium-, and long-term uptrends, while an impressive 9 of the 11 major sectors maintain their long-term bullish trajectories. Furthermore, the S&P 500 Advance-Decline line is maintaining its structural support and marching higher, proving that the vast majority of equities are pulling their weight.
From a tactical setup perspective, we remain heavily committed to Mid-caps and Small-caps, which are flashing some of the most dominant relative strength in the entire market. Meanwhile, the blistering recovery in tech is creating selective, highly attractive entry points now that chart repair is underway—notably highlighted by Technology leading the sector scoreboard on Thursday. We are combining this with high-conviction plays in Financials, Industrials, and Healthcare, which boast pristine breakout trends. What we are looking at is potentially a phenomenal macro setup where this broadening trade can easily run simultaneously with a revitalized tech sector. With the S&P 500 sitting directly beneath a critical overhead resistance level, a unified, multi-engine rally could easily pierce this ceiling and catapult the headline index to fresh all-time highs in short order. It will be crucial to see how the market digests another major stock offering (SK Hynix from South Korea) in Friday’s session. If all goes well and broadly stocks perform well on the day, this potential outcome could become reality
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Optioneering Team Market Update July 10, 2026