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2026-W21

Finance Analyst Report: 2026-05-21 04:00:18 ET

Signal Alignment

SPY Direction: SPY +0.7% (3d) | Alignment: 100% (4 aligned, 0 divergent) Status: MIXED — Mixed — no clear signal consensus

Category Signal Says vs SPY Key Driver
Dark Pool 🟢 BULLISH ✓ ALIGNED DIX 0.434 moderate, 0DTE PCR 0.80 call-heavy
Gamma 🟢 BULLISH ✓ ALIGNED GEX +6.4B strong suppression
Credit 🟢 BULLISH ✓ ALIGNED HY OAS 2.86% moderate, NFCI -0.523 loose
Breadth ⚪ NEUTRAL Breadth 53% — mixed participation
Energy ⚪ NEUTRAL Energy ELEVATED — watch for transmission but not yet bearish
growth_expectations ⚪ NEUTRAL Copper/Gold +7.6% growth optimism · real yield 2.18% restrictive
Correlations ⚪ NEUTRAL SPY/VIX -0.54 elevated, SPY/DXY -0.62 stretched, SPY/TNX +0.37 normal, SPY/Oil -0.74 stretched
Volatility ⚪ NEUTRAL VIX 17.4 sub-20 in contango · SKEW 132 normal · VVIX/VIX 5.53 dealer stress
Inflation ⚪ NEUTRAL Stagflation score 36 — moderate, watching
carry_risk 🟢 BULLISH ✓ ALIGNED USD/JPY 5d +0.3% stable, MOVE 82 calm
Liquidity ⚪ NEUTRAL Liquidity Adequate, cut prob 11% — hawkish lean but no BS drain

Divergence read: Transitional regime with a bullish tilt (dark pool, gamma, and credit) — but transitional is by definition unstable, so take the lean at a discount until regime settles.

Market Status

Regime: TRANSITIONAL | Score: 74/100 (Favorable, with caution) | Score reads 74 (Favorable) but regime is TRANSITIONAL — DIX below threshold (0.434) keeps full risk-on classification at bay.

Leading indicators show DIX stable at 0.434; GEX positive at 6.4B (vol-suppressing). Lagging confirmation: VIX at 17.4 (low-fear environment); sentiment reads Neutral; seasonal pattern historically neutral.

  • Sentiment: Neutral (Score: 0.14)

What Changed

  • No signal changes detected.

Key Levels

  • SPY: $738.30 | 50 SMA $692.47 | 200 SMA $677.17 | +0.1% from 50d | ZGL $730.93
  • QQQ: $708.27 | 50 SMA $635.46 | 200 SMA $612.39 | +0.1% from 50d | ZGL $707.12
  • IWM: $278.78 | 50 SMA $264.72 | 200 SMA $251.62 | +0.1% from 50d | ZGL $279.08
  • VIX: 17.44 — sub-20 (low vol)
  • 10Y Yield: 4.572%

Equity & Derivatives Board

Ticker Price RSI(14) IVR ZGL γ-Sent PCR
SPY $738.30 67.57 36.1 $730.93 Bearish 0.49
QQQ $708.27 71.53 61.1 $707.12 Neutral 0.58
IWM $278.78 51.12 41.0 $279.08 Neutral 1.48

Macro Board

Ticker Price RSI(14) IVR ZGL γ-Sent PCR
VIX 17.44 45.83 14.6 $10.50 Bearish 0.21
TNX 45.72 70.58 51.1 - - -
GLD $417.24 45.12 27.3 $416.66 Neutral 0.69
DXY 99.17 64.73 36.3 - - -
SLV $68.59 53.07 30.7 $45.00 Neutral 0.81

Dark Pool Activity

  • DIX (Dark Index): 0.434
  • DIX Signal: Neutral
  • GEX (Gamma Exposure): 6.38B

Credit Conditions

  • HY OAS Spread: 2.86% (Normal)
  • BBB Spread: 0.95%
  • 2s10s Spread: 0.53% (Healthy slope)

Market Breadth

  • Stocks Above 50-Day SMA: 53.4%
  • Stocks Above 200-Day SMA: 56.9%
  • Breadth Signal: Moderately Bullish
  • Total Stocks Analyzed: 500
  • Mag 7 Concentration: 32.8%
  • Top 10 Concentration: 43.4%

Sector Breadth

Sector % > 50d SMA Stocks
Real Estate 96.4% 27/28
Energy 84.2% 16/19
Technology 73.8% 48/65
Financials 72.1% 49/68
Communication Services 55.0% 11/20
Consumer Staples 50.0% 17/34
Industrials 47.8% 32/67
Health Care 35.2% 19/54
Consumer Discretionary 32.2% 19/59
Materials 25.0% 6/24
Utilities 23.3% 7/30

Energy & Commodities

  • Energy Regime: ELEVATED
  • WTI Crude: $98.72 (5d: -2.4%)
  • Brent Crude: $105.39 | Spread: $6.67
  • RBOB Gasoline: $3.3800/gal
  • Heating Oil: $3.8400/gal
  • 3-2-1 Crack Spread: $49.68/bbl (Very wide)
  • XLE (Energy Sector): $59.80
  • UNG (Nat Gas): $11.49

Correlations

Pair 20d Corr Signal
SPY / VIX -0.539 elevated
SPY / DXY -0.62 stretched
SPY / TNX 0.372 normal
SPY / Oil -0.738 stretched

Volatility & Options

  • Volatility Regime: Contango (Normal)
  • MOVE Index (Bond Vol): 81.53
  • VIX/MOVE Ratio: 0.21 (Normal Relationship)
  • 0DTE Call Volume: 3,183,116.0
  • 0DTE Put Volume: 2,547,905.0
  • 0DTE Put/Call Ratio: 0.80 (Balanced 0DTE Flow)
  • 0DTE Notional Dollar Volume: $424.8B
  • Gamma Call Wall: $745 | Put Wall: $730 (Spot: $738.30)

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: 4.57%
  • Yield Curve (10Y-3M): 1.02 (Normal)
  • DXY: 99.17
  • Growth vs Value: 0.96
  • Fed Funds Rate: 3.50-3.75% | Next FOMC: 2026-06-10
  • Rate Probabilities: Hold 84.0% | Cut 11.0%

Inflation Expectations

  • 5Y Breakeven: 2.59% (Above Target)
  • 10Y Breakeven: 2.44%
  • 5Y5Y Forward: 2.29%
  • Stagflation Risk Score: 36/100

Fed & Global Liquidity

  • Fed Balance Sheet (WALCL): $6728.5B
  • Treasury General Account (TGA): $838.6B
  • Reverse Repo (RRP): $24.9B
  • US Net Liquidity (WALCL - TGA - RRP): $5,865B
  • Liquidity Regime: Adequate
  • ECB Balance Sheet: ~$7,182B
  • BOJ Balance Sheet: ~$4,174B
  • Global Net Liquidity: $17,221B
  • BTC-USD (Liquidity Proxy): $77,814 ▲ (Neutral)

Active Alerts

  • [WARNING] 10Y real yield at 2.18% — restrictive monetary conditions weighing on growth assets.
  • [WARNING] Sector breadth divergence: wide spread between strongest and weakest sectors — rotation or narrow leadership.
  • [WARNING] Oil-equity transmission active: SPY-Oil correlation at -0.738 with energy in ELEVATED — crude shock propagating into equities.
  • [CRITICAL] WTI crude at $98.72 — energy shock territory, stagflation risk rising.
  • [WARNING] 5Y breakeven inflation at 2.59% — inflation expectations well above Fed target.
  • [WARNING] 3-2-1 crack spread at $49.68/bbl — refining margins extremely elevated, consumer fuel price pressure.
  • [WARNING] Oil spike alert: USO at $144.27 — potential geopolitical disruption or supply shock.
  • [WARNING] Key correlation regime break detected — normal market relationships are shifting, increased unpredictability.
  • [WARNING] CTA SMA stack now 4/4 — systematic trend trigger fired. Above all 4 SMAs (full-stack long).
  • [INFO] Breadth crossed above 50% (54% >50d SMA) — participation broadening, bullish reversal signal.

Seasonality

  • Current Month: May
  • Average Return: +1.07%
  • Median Return: +1.61%
  • Hit Rate: 80%
  • Signal: Historically Neutral

Today's Events

Economic Releases:

  • Initial Jobless Claims: ⏳ Pending
  • Philadelphia Fed Manufacturing Index(May): ⏳ Pending
  • S&P Global Manufacturing PMI(May): ⏳ Pending
  • S&P Global Services PMI(May): ⏳ Pending
  • Atlanta Fed GDPNow(Q2): ⏳ Pending
  • Building Permits(Apr): ⏳ Pending
  • Continuing Jobless Claims: ⏳ Pending
  • Housing Starts(Apr): ⏳ Pending

Earnings:

  • WMT: EPS Est. $0.66 (↓0.0% vs 30d)

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
  • Retail Sales: 2026-06-17

Earnings & EPS Estimates:

  • 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 (↑3.9% vs 30d)
  • MSFT (2026-07-29): EPS Est. $4.24 (↓0.4% vs 30d)
  • META (2026-07-29): EPS Est. $7.20 (↑1.1% vs 30d)
  • AAPL (2026-07-30): EPS Est. $1.90 (↑9.6% vs 30d)
  • AMZN (2026-07-30): EPS Est. $1.82 (↑1.8% vs 30d)

FX News Wire

Unread articles (21):

[1] Euro trades cautiously against British Pound ahead of EU-UK flash PMI data URL: https://www.fxstreet.com/news/euro-trades-cautiously-against-british-pound-ahead-of-eu-uk-flash-pmi-data-202605210706 Published: Thu, 21 May 2026 07:06:05 Z

[2] Canadian Dollar weakens to near 1.3750 on softer Canadian CPI, US-Iran diplomatic hopes URL: https://www.fxstreet.com/news/canadian-dollar-weakens-to-near-13750-on-softer-canadian-cpi-us-iran-diplomatic-hopes-202605210700 Published: Thu, 21 May 2026 07:00:56 Z

[3] Indonesian Rupiah: Supported after jumbo BI hike - MUFG URL: https://www.fxstreet.com/news/indonesian-rupiah-supported-after-jumbo-bi-hike-mufg-202605210700 Published: Thu, 21 May 2026 07:00:04 Z

[4] Equities: Risk-on rotation with Iran peace hopes - Danske Bank URL: https://www.fxstreet.com/news/equities-risk-on-rotation-with-iran-peace-hopes-danske-bank-202605210647 Published: Thu, 21 May 2026 06:47:25 Z

[5] Forex Today: Focus shifts to US-Iran talks, PMI data from major economies URL: https://www.fxstreet.com/news/forex-today-focus-shifts-to-us-iran-talks-pmi-data-from-major-economies-202605210641 Published: Thu, 21 May 2026 06:41:14 Z

[6] Australian Dollar: Labor data threatens RBA-driven gains - Commerzbank URL: https://www.fxstreet.com/news/australian-dollar-labor-data-threatens-rba-driven-gains-commerzbank-202605210637 Published: Thu, 21 May 2026 06:37:25 Z

[7] AUD/USD Price Forecast: Picks up above 0.7120 after finding support in the 0.7100 area URL: https://www.fxstreet.com/news/aud-usd-price-forecast-picks-up-above-07120-after-finding-support-in-the-07100-area-202605210635 Published: Thu, 21 May 2026 06:35:01 Z

[8] Switzerland Industrial Production (YoY) below forecasts (0.5%) in 1Q: Actual (-7.1%) URL: https://www.fxstreet.com/news/switzerland-industrial-production-yoy-below-forecasts-05-in-1q-actual-71-202605210630 Published: Thu, 21 May 2026 06:30:00 Z

[9] Euro: Downside focus against US Dollar tempered by rebound - UOB URL: https://www.fxstreet.com/news/euro-downside-focus-against-us-dollar-tempered-by-rebound-uob-202605210620 Published: Thu, 21 May 2026 06:20:57 Z

[10] Silver Price Forecast: XAG/USD faces pressure near $76.60 as US yields rebound URL: https://www.fxstreet.com/news/silver-price-forecast-xag-usd-faces-pressure-near-7660-as-us-yields-rebound-202605210617 Published: Thu, 21 May 2026 06:17:03 Z

[11] WTI edges lower below $98.50 on US-Iran deal optimism
URL: https://www.fxstreet.com/news/wti-edges-lower-below-9850-on-us-iran-deal-optimism-202605210604 Published: Thu, 21 May 2026 06:04:42 Z

[12] Gold drifts lower as USD draws support from Iran uncertainty and hawkish Fed bets URL: https://www.fxstreet.com/news/gold-slips-as-hawkish-fed-and-iran-uncertainty-support-usd-202605210435 Published: Thu, 21 May 2026 05:56:34 Z

[13] Indian Rupee bounces back due to RBI's intervention, sharp correction in oil prices URL: https://www.fxstreet.com/news/indian-rupee-bounces-back-due-to-rbis-intervention-sharp-correction-in-oil-prices-202605210554 Published: Thu, 21 May 2026 05:54:29 Z

[14] BoJ's Koeda: Appropriate to deal with inflation with monetary policy URL: https://www.fxstreet.com/news/bojs-koeda-appropriate-to-deal-with-inflation-with-monetary-policy-202605210543 Published: Thu, 21 May 2026 05:43:18 Z

[15] Pound Sterling Price News and Forecast: GBP/USD flatlines near 1.3435 in Thursday's Asian session URL: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-usd-flatlines-near-13435-in-thursdays-asian-session-202605210540 Published: Thu, 21 May 2026 05:40:31 Z

[16] British Pound struggles to lure buyers; flat lines vs USD amid Iran risks and hawkish Fed URL: https://www.fxstreet.com/news/british-pound-struggles-to-lure-buyers-flat-lines-vs-usd-amid-iran-risks-and-hawkish-fed-202605210539 Published: Thu, 21 May 2026 05:39:32 Z

[17] India HSBC Manufacturing PMI dipped from previous 54.7 to 54.3 in May URL: https://www.fxstreet.com/news/india-hsbc-manufacturing-pmi-dipped-from-previous-547-to-543-in-may-202605210515 Published: Thu, 21 May 2026 05:15:27 Z

[18] India HSBC Services PMI climbed from previous 58.8 to 58.9 in May URL: https://www.fxstreet.com/news/india-hsbc-services-pmi-climbed-from-previous-588-to-589-in-may-202605210514 Published: Thu, 21 May 2026 05:14:53 Z

[19] ECB's Rehn: Raising rates may be needed in adverse scenario to maintain credibility URL: https://www.fxstreet.com/news/ecbs-rehn-raising-rates-may-be-needed-in-adverse-scenario-to-maintain-credibility-202605210514 Published: Thu, 21 May 2026 05:14:48 Z

[20] India HSBC Composite PMI: 58.1 (May) vs previous 58.2 URL: https://www.fxstreet.com/news/india-hsbc-composite-pmi-581-may-vs-previous-582-202605210514 Published: Thu, 21 May 2026 05:14:46 Z

[21] New Zealand Dollar weakens despite stronger Trade Balance data URL: https://www.fxstreet.com/news/new-zealand-dollar-weakens-despite-stronger-trade-balance-data-202605210514 Published: Thu, 21 May 2026 05:14:13 Z

Iran War News

Updates (5):

[1] Iran rebuilding military faster than expected - CNN Time: 2026-05-21T07:22:34.600Z

[2] Pakistan interior minister meets Iran foreign minister in Tehran Time: 2026-05-21T06:59:24.197Z

[3] Mojtaba Khamenei using bin Laden template to survive - Fox News Time: 2026-05-21T06:48:10.977Z

[BREAKING] [4] Pakistan army chief to visit Tehran on Thursday - state media Time: 2026-05-21T06:29:53.869Z

[5] Iran should seize Israel-linked ships, hardline editor says Time: 2026-05-21T05:55:26.246Z

Hormuz Strait Status

Strait of Hormuz Dashboard:

  • Strait Status: RESTRICTED (since 2026-02-28, 82 days ago)
  • Ships Transiting: 2 of 60 normal daily — 3.3% of normal
  • Throughput: 1.5% of normal (0.2M / 10.3M DWT)
  • Stranded Vessels: 300
  • Oil Prices: Brent $106.11 (+2.54%)
  • War Risk Insurance: EXTREME — 53.3x normal
  • Tanker Rates: WS85 (+70% vs pre-crisis)
  • Global Impact: 21% of world oil supply at risk; est. $8.5 billion/day economic cost