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2026-W21

Finance Analyst Report: 2026-05-18 08:00:19 ET

Signal Alignment

SPY Direction: SPY 0.0% (3d) | Alignment: 60% (3 aligned, 2 divergent) Status: MIXED — Mixed — no clear signal consensus

Category Signal Says vs SPY Key Driver
Dark Pool ⚪ NEUTRAL DIX 0.459 moderate
Gamma 🟢 BULLISH ✓ ALIGNED GEX +18.2B strong suppression
Credit 🟢 BULLISH ✓ ALIGNED HY OAS 2.76% benign, NFCI -0.524 loose
Breadth ⚪ NEUTRAL Breadth 45% — mixed participation
Energy 🔴 BEARISH ✗ DIVERGENT Energy SHOCK — oil shock creates stagflation risk
growth_expectations ⚪ NEUTRAL Copper/Gold +10.6% growth optimism · real yield 2.00% firm
Correlations 🔴 BEARISH ✗ DIVERGENT SPY/Oil -0.70 — oil shock transmitting directly into equity pricing
Volatility ⚪ NEUTRAL VIX 18.4 sub-20 in contango · SKEW 146 firm · VVIX/VIX 5.04 dealer stress
Inflation ⚪ NEUTRAL Stagflation score 42 — moderate, watching
carry_risk 🟢 BULLISH ✓ ALIGNED USD/JPY 5d +1.0% stable, MOVE 80 calm
Liquidity ⚪ NEUTRAL Liquidity Adequate

Divergence read: Signals are mixed with no strong directional consensus against price.

Market Status

Regime: CAUTIOUS | Score: 71/100 (Favorable, with caution) | Score reads 71 (Favorable) but regime is CAUTIOUS — breadth at 45% and energy regime SHOCK keeps full risk-on classification at bay.

Leading indicators show energy SHOCK (WTI at $101, watch for margin compression); DIX stable at 0.459; GEX positive at 18.2B (vol-suppressing). Lagging confirmation: VIX at 18.4 (low-fear environment); sentiment reads Bullish; seasonal pattern historically neutral.

  • Sentiment: Bullish (Score: 0.2)

What Changed

  • No signal changes detected.

Key Levels

  • SPY: $737.34 | 50 SMA $690.04 | 200 SMA $676.07 | +0.1% from 50d | ZGL $730.95
  • QQQ: $706.32 | 50 SMA $631.46 | 200 SMA $610.95 | +0.1% from 50d | ZGL $698.9
  • IWM: $276.82 | 50 SMA $263.83 | 200 SMA $251.05 | +0.0% from 50d | ZGL $253.0
  • VIX: 18.43 — sub-20 (low vol)
  • 10Y Yield: 4.595%

Equity & Derivatives Board

Ticker Price RSI(14) IVR ZGL γ-Sent PCR
SPY $737.34 69.61 37.4 $730.95 Neutral 1.36
QQQ $706.32 73.26 59.9 $698.90 Neutral 1.29
IWM $276.82 50.55 49.0 $253.00 Bearish 3.43

Macro Board

Ticker Price RSI(14) IVR ZGL γ-Sent PCR
VIX 18.43 52.20 18.5 $10.50 Neutral 0.71
TNX 45.95 71.06 61.5 - - -
GLD $417.00 40.30 27.8 $422.75 Bearish 1.55
DXY 99.27 59.38 34.5 - - -
SLV $68.76 51.07 30.4 $49.00 Neutral 1.18

Dark Pool Activity

  • DIX (Dark Index): 0.459
  • DIX Signal: Moderate buying
  • GEX (Gamma Exposure): 18.16B

Credit Conditions

  • HY OAS Spread: 2.76% (Normal)
  • BBB Spread: 0.95%
  • 2s10s Spread: 0.50% (Healthy slope)

Market Breadth

  • Stocks Above 50-Day SMA: 44.8%
  • Stocks Above 200-Day SMA: 52.7%
  • Breadth Signal: Moderately Bullish
  • Total Stocks Analyzed: 500
  • Mag 7 Concentration: 33.0%
  • Top 10 Concentration: 43.9%

Sector Breadth

Sector % > 50d SMA Stocks
Energy 89.5% 17/19
Real Estate 67.9% 19/28
Technology 66.2% 43/65
Financials 52.9% 36/68
Communication Services 50.0% 10/20
Consumer Staples 47.1% 16/34
Industrials 44.8% 30/67
Materials 41.7% 10/24
Health Care 25.9% 14/54
Consumer Discretionary 22.0% 13/59
Utilities 6.7% 2/30

Energy & Commodities

  • Energy Regime: SHOCK
  • WTI Crude: $101.02 (5d: +3.0%)
  • Brent Crude: $109.26 | Spread: $8.24
  • RBOB Gasoline: $3.5600/gal
  • Heating Oil: $3.9200/gal
  • 3-2-1 Crack Spread: $53.54/bbl (Very wide)
  • XLE (Energy Sector): $59.44
  • UNG (Nat Gas): $11.33

Correlations

Pair 20d Corr Signal
SPY / VIX -0.66 elevated
SPY / DXY -0.708 stretched
SPY / TNX 0.331 normal
SPY / Oil -0.704 stretched

Volatility & Options

  • Volatility Regime: Contango (Normal)
  • MOVE Index (Bond Vol): 79.87
  • VIX/MOVE Ratio: 0.23 (Normal Relationship)
  • 0DTE Call Volume: 0.0
  • 0DTE Put Volume: 0.0
  • 0DTE Put/Call Ratio: 0.91 (No 0DTE Expiry Today)
  • 0DTE Notional Dollar Volume: $552.2B
  • Gamma Call Wall: $742 | Put Wall: $735 (Spot: $737.34)

CTA Trend Stack

  • SMA Stack Score: 4/4 above
  • Position: Above all 4 SMAs (full-stack long)

Positioning & Sentiment

  • CFTC E-mini Specs Net: -143,835 contracts (Z -0.18, as of 2026-05-12)
  • AAII Bull-Bear Spread: +2.7% (as of 2026-05-13)
  • Squeeze Setup: none (0/4 triggers · no triggers active)

Macro Fundamentals

  • 10Y Yield: 4.60%
  • Yield Curve (10Y-3M): 1.01 (Normal)
  • DXY: 99.27
  • Growth vs Value: 0.96
  • Fed Funds Rate: 3.50-3.75% | Next FOMC: 2026-06-10
  • Rate Probabilities: Hold None | Cut None

Inflation Expectations

  • 5Y Breakeven: 2.70% (Above Target)
  • 10Y Breakeven: 2.49%
  • 5Y5Y Forward: 2.28%
  • Stagflation Risk Score: 42/100

Fed & Global Liquidity

  • Fed Balance Sheet (WALCL): $6728.5B
  • Treasury General Account (TGA): $838.6B
  • Reverse Repo (RRP): $0.6B
  • US Net Liquidity (WALCL - TGA - RRP): $5,889B
  • Liquidity Regime: Adequate
  • ECB Balance Sheet: ~$7,199B
  • BOJ Balance Sheet: ~$4,178B
  • Global Net Liquidity: $17,267B ◆
  • BTC-USD (Liquidity Proxy): $77,242 ▲ (Neutral)

Active Alerts

  • [WARNING] Oil market backwardation signal: energy regime SHOCK with crack spread at $53.54/bbl — supply disruption driving spot premium.
  • [WARNING] SKEW at 146 — elevated tail-risk hedging activity.
  • [WARNING] Sector breadth divergence: wide spread between strongest and weakest sectors — rotation or narrow leadership.
  • [CRITICAL] WTI crude at $101.02 — triple-digit oil, severe stagflation and margin pressure.
  • [WARNING] Oil-equity transmission active: SPY-Oil correlation at -0.704 with energy in SHOCK — crude shock propagating into equities.
  • [CRITICAL] WTI crude at $101.02 — energy shock territory, stagflation risk rising.
  • [WARNING] 5Y breakeven inflation at 2.70% — inflation expectations well above Fed target.
  • [WARNING] 3-2-1 crack spread at $53.54/bbl — refining margins extremely elevated, consumer fuel price pressure.
  • [WARNING] Oil spike alert: USO at $148.23 — potential geopolitical disruption or supply shock.
  • [WARNING] Key correlation regime break detected — normal market relationships are shifting, increased unpredictability.

Seasonality

  • Current Month: May
  • Average Return: +1.06%
  • Median Return: +1.61%
  • Hit Rate: 80%
  • Signal: Historically Neutral

Today's Events

Economic Releases:

  • Industrial Production(MoM)(Apr): 0.7% vs Est. 0.3% (BEAT) | Prev: -0.3%
  • Industrial Production(YoY)(Apr): 1.35% | Prev: 0.76%
  • NY Empire State Manufacturing Index(May): 19.60 vs Est. 7.30 (BEAT) | Prev: 11.00

Upcoming Calendar (30 Days)

Economic Releases:

  • Philadelphia Fed Mfg Index: 2026-05-26
  • Gross Domestic Product (GDP): 2026-05-28
  • Employment Situation (Payrolls): 2026-06-05
  • Consumer Price Index (CPI): 2026-06-10
  • Producer Price Index (PPI): 2026-06-11
  • Industrial Production: 2026-06-15

Earnings & EPS Estimates:

  • NVDA (2026-05-20): EPS Est. $1.78 (↑0.4% vs 30d)
  • WMT (2026-05-21): EPS Est. $0.66 (↓0.3% vs 30d)
  • JPM (2026-07-14): EPS Est. $5.40 (↑0.0% vs 30d)
  • GS (2026-07-14): EPS Est. $13.74 (↓4.7% vs 30d)
  • TSLA (2026-07-22): EPS Est. $0.45 (↑1.7% vs 30d)
  • GOOGL (2026-07-23): EPS Est. $2.87 (↑4.0% vs 30d)
  • MSFT (2026-07-29): EPS Est. $4.24 (↓0.2% vs 30d)
  • META (2026-07-29): EPS Est. $7.23 (↑1.5% vs 30d)
  • AAPL (2026-07-30): EPS Est. $1.90 (↑9.6% vs 30d)
  • AMZN (2026-07-30): EPS Est. $1.82 (↑2.0% vs 30d)

FX News Wire

Unread articles (14):

[1] Japanese Yen: Intervention threat capping losses versus US Dollar - BBH URL: https://www.fxstreet.com/news/japanese-yen-intervention-threat-capping-losses-versus-us-dollar-bbh-202605181147 Published: Mon, 18 May 2026 11:47:36 Z

[2] AUD/USD: Momentum points to break of 0.7100 - UOB URL: https://www.fxstreet.com/news/aud-usd-momentum-points-to-break-of-07100-uob-202605181130 Published: Mon, 18 May 2026 11:30:31 Z

[3] Gold Price Forecast: XAU/USD steadies above $4,500 awaiting news from Iran URL: https://www.fxstreet.com/news/gold-price-forecast-xau-usd-steadies-above-4-500-awaiting-news-from-iran-202605181126 Published: Mon, 18 May 2026 11:26:01 Z

[4] AUD/USD Price Forecast: Flattens around 0.7150 after recovering early losses URL: https://www.fxstreet.com/news/aud-usd-price-forecast-flattens-around-07150-after-recovering-early-losses-202605181124 Published: Mon, 18 May 2026 11:24:01 Z

[5] United Kingdom: Sluggish jobs outlook persists - Deutsche Bank URL: https://www.fxstreet.com/news/united-kingdom-sluggish-jobs-outlook-persists-deutsche-bank-202605181122 Published: Mon, 18 May 2026 11:22:44 Z

[6] IMF Staff: BoE doesn't need to raise interest rates this year URL: https://www.fxstreet.com/news/imf-staff-boe-doesnt-need-to-raise-interest-rates-this-year-202605181114 Published: Mon, 18 May 2026 11:14:58 Z

[7] Chinese Yuan: Stimulus hopes as PBoC defends 6.8 - TD Securities URL: https://www.fxstreet.com/news/chinese-yuan-stimulus-hopes-as-pboc-defends-68-td-securities-202605181112 Published: Mon, 18 May 2026 11:12:25 Z

[8] US Dollar: Structural risks behind yield-driven strength - DBS URL: https://www.fxstreet.com/news/us-dollar-structural-risks-behind-yield-driven-strength-dbs-202605181102 Published: Mon, 18 May 2026 11:02:56 Z

[9] Australian Dollar climbs against Yen as structural forces weigh on JPY URL: https://www.fxstreet.com/news/australian-dollar-climbs-against-yen-as-structural-forces-weigh-on-jpy-202605181058 Published: Mon, 18 May 2026 10:58:33 Z

[10] Indian Rupee hits fresh all-time lows as oil prices rise further URL: https://www.fxstreet.com/news/indian-rupee-falls-further-as-oil-prices-extend-advance-202605180545 Published: Mon, 18 May 2026 10:48:32 Z

[11] Euro upside attempts remain limited amid cautious markets URL: https://www.fxstreet.com/news/euro-ticks-up-from-six-week-lows-despite-risk-averse-markets-high-oil-prices-202605180741 Published: Mon, 18 May 2026 10:27:13 Z

[12] US Dollar Index (DXY) eases to 99.10 amid hopes of a US-Iran peace deal URL: https://www.fxstreet.com/news/us-dollar-index-dxy-eases-to-9910-amid-hopes-of-a-us-iran-peace-deal-202605181010 Published: Mon, 18 May 2026 10:10:51 Z

[13] Euro: Bond sell-off weighs against US Dollar - ING URL: https://www.fxstreet.com/news/euro-bond-sell-off-weighs-against-us-dollar-ing-202605181006 Published: Mon, 18 May 2026 10:06:12 Z

[14] Japanese Yen: Fiscal risks and energy shock weigh on JPY - MUFG URL: https://www.fxstreet.com/news/japanese-yen-fiscal-risks-and-energy-shock-weigh-on-jpy-mufg-202605180956 Published: Mon, 18 May 2026 09:56:36 Z

Iran War News

Updates (5):

[1] Sanctioned LPG tanker loads at Iran's Kharg Island, tracking firm says Time: 2026-05-18T11:38:21.338Z

[BREAKING] [2] Pakistan sends squadron, 8,000 troops to Saudi Arabia - Reuters Time: 2026-05-18T11:16:04.186Z

[3] IRGC-linked propaganda posts targeted across platforms, Europol says Time: 2026-05-18T11:00:06.772Z

[BREAKING] [4] Germany says Iran must open Strait of Hormuz without limits Time: 2026-05-18T10:26:55.416Z

[5] Volant Media's 'Art of Resistance' wins two awards at Swedish film festival Time: 2026-05-18T10:15:22.341Z

Hormuz Strait Status

Hormuz Strait: no change since last report.

Strait of Hormuz Dashboard:

  • Ships Transiting: Near zero (normal: ~60/day)
  • Stranded Vessels: 150+ ships including tankers, bulk carriers, and other commercial vessels
  • Oil Prices: Brent crude surging due to supply disruption
  • War Risk Insurance: Premiums at extreme levels, over 16x normal rates
  • Throughput: Under 2% of normal daily deadweight tonnage
  • Global Impact: 21% of world oil supply at risk; 25% of global LNG trade at risk; est. $4 billion/day economic cost
  • Shipping: +14 days via Cape reroute; tanker rates tripled