The Sunday Stalk List | Ep.41

Back In The Ring

By Larry Thompson

April 12, 2026

Welcome back to The Sunday Stalk List.

Every weekend, I review hundreds if not thousands of charts across U.S. indices, global markets, breadth, sentiment, and intermarket relationships.

And now I’m opening up my stalk list.

The names that stood out the most from my review.

This Week’s Theme: Back In The Ring

The bears landed some clean punches in March and knocked the bulls out of the ring.

What we’re seeing now is a response, not dominance.

A sharp bounce off oversold conditions, breadth expanding, and price pushing back into prior ranges.

I'm optimistic here are price is reclaiming some key levels but let’s call it what it is.

The bulls just climbed back through the ropes.

They haven’t taken control of the fight.

Now to be fair, the bulls tend to win the majority of these fights over time.

I’m not ignoring that. But they still have to prove it here.

Price is now pressing into that prior supply zone, while momentum resets back toward the midline.

This is where it gets tougher. This is where follow through matters.

I broke down the full road to recovery on Friday’s show.

Today is about what needs to happen next, because this is the part where good bounces either turn into trends…or roll back over.

Let's get into it.

Breadth - "The Market of Stocks"

If you missed it, I broke down this dashboard and how I actually use it in my process during my weekly show.

Breadth is improving, but it’s still early in the process.

Short-term thrust is clearly there.

You’re seeing strong rebounds in 5-day and 20-day readings across most sectors, especially offensives like Tech, Discretionary, and Industrials.

That’s the bulls stepping back into the ring.

But zoom out and the longer-term picture tells the other part of the story (I know many ignore both sides of the story).

The 50-day and 100-day participation is still weak across those same offensive groups, while defensives like Utilities and Energy remain firmly in control of the longer-term trend.

If this move is going to stick, we need to see that short-term strength translate into sustained expansion in the 50-day and 100-day columns, led by the offensive sectors that actually move the index.

Until then, this is a tradeable bounce with potential, not a confirmed bottom.

The Stalk List

SPY — S&P 500 - Back In The Ring

It’s great the bulls got back in the ring, but now they need to get their hands up and start landing punches as price pushes back into this prior supply zone.

Momentum is recovering toward the midline, but this is where the real fight begins.

I'm optimistic here but want nothing to do with it if we break back below the ATH AVWAP.

XLK — Technology

Once again, congrats to the tech bulls for getting back in the ring, but the fight’s not over as price runs right into that downtrend and ATH AVWAP.

Let’s see RSI get out of this bearish range and confirm this move.

If it does, risk is well defined against this zone, but rejection here keeps this choppy and unresolved.

XLI — Industrials

One area showing a lot of promise that I’ve been adding exposure to is Industrials, especially aerospace and infrastructure names continuing to lead.

I like this space using the ATH AVWAP as a stop loss.

XLB — Materials

Materials also look solid, and this is exactly what I want to see from the rest of the market, continued follow through.

RSI is pushing back above 60 and price is above that ATH AVWAP.

I’m optimistic we’re starting to see some areas reclaim those ATH AVWAPs.

That’s the type of behavior you want to see if this move has legs.

Those are the areas I’m keeping my focus on this week, because that’s where the real leadership will come from if this market is ready to go on offense.

Anyway, that's my two cents.