The slim pickings stock market environment is here, folks. We’ve now had three days of pullback, and while the indexes remain technically strong, momentum is cracking beneath the surface.
Today’s reversal brought us into the “bone zone” — that sweet spot between the 9 and 20 EMAs where short-term traders either feast or get smoked. The structure of the market hasn’t changed much, but we’re on alert now.
Market Outlook: Garden Variety Pullback or Something More?
So far, this is your typical garden variety pullback. But look deeper — only 20% of SPY components were green today. QQQ internals look even worse.
At the same time, we’re seeing metal names and lithium plays perk up. That divergence tells us something. It tells us: this market isn’t dead, but it’s rotating.
Stocks to Watch for September 26th
Here’s what I’m looking at for tomorrow:
- $SGML – Lithium name setting up for a breakout above base resistance
- $ALB – Quiet but poised; low correlation to index volatility
- $INTC – Big volume breakout, finally behaving like a real semi
- $MP – Huge mover off the lows; watching for continuation
- $LEU – Reversal setup, red-to-green potential
- $MSTZ – Early stages of trend development
- $KC – China name, decent liquidity, strong pattern
- $CNC – Inside day today after big trend, potential break tomorrow
- $CRWD – Day 5 of pullback; may be setting up for bounce
- $SNDK – Looking for the short; could be entering multi-month consolidation
What's the Game Plan for Friday?
- Keep position sizing light
- Focus on earnings + catalyst names
- Skip anything that’s overextended or tired
- Prioritize range, liquidity, and independent order flow
- Be ready to scalp, not swing for home runs
We’re not in the "go all in" type of watchlist right now. This is a B-minus setup day, not an A+.
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Read more about what market breadth means
🚀 Final Word
Stay selective. Trade what's working. And don’t force it — we’re here to make smart, not heroic trades.
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About the Author:
Kunal Desai is the founder of Bulls on Wall Street and a veteran trader who has trained thousands of students since 2008. He specializes in momentum trading, risk management, and building traders into elite professionals.
