Aug 31, 2026 · 26 min
Indexes hold firm as market breadth narrows
Breadth Narrows, Software Shines: Fortinet, Edwards Lifesciences, UBS In Focus
The episode explains why resilient major indexes may mask weaker participation, making exposure, breakout timing, and position sizing more consequential.
- 1Narrowing breadth argues for reduced exposure and pullback entries rather than aggressive breakout buying.
- 2Software and cybersecurity show leadership, but upcoming earnings increase the risk around otherwise attractive setups.
- 3Fortinet, Edwards Lifesciences, and UBS illustrate why relative strength and market context matter more than patterns alone.
Don't miss
The UBS discussion clarifies that relative strength can reflect a stock declining less than the market, not necessarily advancing in absolute terms.
The brief
Alissa Coram and Justin Nielsen assess a resilient Nasdaq and S&P 500 against weakening breadth, arguing that portfolio exposure should reflect the market’s narrower leadership.
Software and cybersecurity lead the discussion, with IGV and HACK showing strength, but upcoming earnings make ascending-base setups less straightforward to act on.
Energy benefits from higher oil prices and geopolitical headlines, while financials remain strong; the hosts stress position sizing rather than broad sector enthusiasm.
Fortinet’s ascending base near a buy point offers a test of the episode’s central tension: strong group leadership versus a market struggling to sustain breakouts.
Edwards Lifesciences and UBS show why chart patterns require context, especially when relative strength may mean declining less than the market rather than rising outright.
What was said on this episode
19 statements · 14 positive · 2 negative · 2 mixed · 1 neutral
Rising Treasury yields pressure Russell 2000 and debt-dependent small-cap stocks
“with the TNX breaking out, that's something that's going to be a concern for the Russell 2000 and the small cap stock that do rely on a little bit more debt than your big companies.”
Listen at 3:48
Sector rotation is currently active across the market
“It means you... Again, the sector rotation is alive and well right now.”
Listen at 4:07
Current market may favor pullback entries over breakout buying
“maybe this is a market that's more about the pullbacks where you are getting some maybe bounces off of moving average lines, upside reversals, the like.”
Listen at 6:41
Investors should take profits faster because sector rotation reverses gains quickly
“it just might be a time where you have to take your profits a little bit quicker because they don't seem to be lasting very long before that sector rotation comes and gets you again.”
Listen at 6:52
Enterprise software and cybersecurity are current technology standouts
“This resurgence in both the computer software enterprise area and the computer software security are the standouts to me.”
Listen at 7:32
Ascending bases show resistance to downside during choppy markets
“when you're in a choppy market or a sideways market, when you've got an ascending base, it's this resistance to going down.”
Listen at 11:16
Ascending bases can produce powerful advances when market pressure lifts
“if that market weight is lifted then these ascending bases can be Very, very powerful.”
Listen at 11:47
Prolonged oil-market normalization supports investing in energy
“there's been a lot of talk about how long it's going, even if there is more of a resolution, just how long things are going to take to normalize for the oil market. That makes a lot of sense to play that space.”
Listen at 15:13
Financial stocks are trending strongly and finding support near the 21-day average
“the financials, just because this has been trending very nicely above its 21-day moving average line, came down to it again today. But it's been getting support very nicely.”
Listen at 15:49
Numerous cybersecurity setups and working ETFs support the group
“when you see that many setups, when you see the ETFs working.”
Listen at 16:56
Palo Alto Networks earnings can still alter cybersecurity-group conditions
“when you have such a big one coming out, you just got to be aware that it can still kind of change things.”
Listen at 17:17
Healthcare and biotech ETFs retain strong relative strength
“the relative strength still very strong on these”
Listen at 19:04
Edwards Lifesciences could become actionable if it breaks its downtrend
“this is something I'm watching very closely if this can just cross this downtrend.”
Listen at 19:37
Edwards Lifesciences has substantial innovation potential
“this has got a lot of innovation.”
Listen at 20:25
Edwards Lifesciences needs renewed outperformance to strengthen its setup
“we'd want to see it get back into that out performance mode.”
Listen at 20:50
UBS broke out from a cup pattern above 55.15
“This was just your classic breakout here out of a cup pattern above 55.15.”
Listen at 23:04
UBS’s ratings and relative-strength breakout are positive signals
“These are all positive signs.”
Listen at 23:23
UBS is outperforming and holding up strongly versus other stocks
“it's looking very powerful and holding up a lot better than a lot of things out there.”
Listen at 23:42
Lower-volatility stocks may be preferable in the current market
“sometimes in a market like this, slower is better.”
Listen at 24:23
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.