The "Mr. Clean" Market
Mr. Clean Market
In most business schools, you eventually study Six Sigma or Lean management.
One of the first steps in any lean process?
Clean the environment.
Why? Because clarity drives performance.
A clean space improves focus, removes friction, and reduces errors.
It builds discipline – one decision at a time.
That’s exactly how I see this market right now:
Squeaky clean.
Clean charts → Clear decisions → Confident execution.
The Message is Clean and Clear
From the $IWB ( ▲ 0.65% ) Russell 1000, which represents over 90% of the total U.S. equity market cap, to the $OEF ( ▲ 0.56% ) S&P 100, the message is clean and clear.
We had the capitulatory lows.
What followed was a strong thrust higher and and now we’re seeing all the technical confirmations that say:
The Bull Market is back. The bottom is for real.
1.) We’re back above key prior resistance levels. That’s classic polarity. What was resistance is now support.
2.) We’ve reclaimed the 200-day moving average. That’s long-term trend strength reasserting itself.
3.) We’re above the anchored VWAPs from all-time highs. Any lingering supply overhead has likely been absorbed.
4.) Momentum is in our favor as RSI is holding above 50, and the Directional Index is showing positive trend strength (+DI > -DI).
$SPY ( ▲ 0.63% ) – The S&P 500
Clean levels to add during a pullback or manage risk during a breakdown.
$RSP ( ▲ 0.98% ) – The S&P 500 Equal Weight
Clean levels to add during a pullback or manage risk during a breakdown.
$QQQ ( ▲ 0.44% ) – Nasdaq 100
Clean levels to add during a pullback or manage risk during a breakdown.
$QQQE ( ▲ 0.72% ) – Nasdaq 100 Equal Weight
Clean levels to add during a pullback or manage risk during a breakdown.
$IWB ( ▲ 0.65% ) – Russell 1000
Clean levels to add during a pullback or manage risk during a breakdown.
$EQAL ( ▲ 0.65% ) – Russell 1000 Equal Weight
Clean levels to add during a pullback or manage risk during a breakdown.
$OEF ( ▲ 0.56% ) – S&P 100
Clean levels to add during a pullback or manage risk during a breakdown.
$EQWL ( ▲ 0.79% ) – S&P 100 Equal Weight
Clean levels to add during a pullback or manage risk during a breakdown.
The ENTIRE market is participating right now.
This isn’t narrow leadership. It’s broad based strength.
The confluence of information coupled with confluence of support on the charts makes this a great setup.
Dips back into these key levels should be seen as opportunites to continue to add exposure.
The Framework is Simple
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Have exposure. The only loser right now is those not exposed.
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Buy the dips. Don’t fear weakness, lean into it near key levels highlighted above.
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Manage risk. If we lose the levels? Reassess. Trim. Don’t fight.
Weekly Show on Stocktwits
Check out my weekly show with my friends at Stocktwits!
In the first 20 minutes, I break down market conditions and give some insights to the risk metrics I use to know this rally is for real.
Put it on 1.5x speed and let it rip.
The Morning Show
I popped on “The Morning Show” today with my good friends Jason Perz and Spencer Israel.
I come in around the 35 minute mark.
We talk through international, breadth and what may be next for the market.
Cheers,
Larry Thompson, CMT CPA
